Defined fees for superannuation

Activity fees

A fee is an activity fee for a superannuation product if:

  • the fee relates to costs incurred by the trustee, or the trustees, of the superannuation entity that are directly related to an activity of the trustee:
    • that is engaged in at the request, or with the consent, of a member; or
    • that relates to a member and is required by law; and
  • those costs are not otherwise charged as an administration fee, an investment fee, a buy-sell spread, a switching fee, an exit fee, an advice fee or an insurance fee.

Administration fees

An administration fee for a superannuation product is a fee that relates to the administration or operation of the superannuation entity and includes costs incurred by the trustee of the entity that:

  • relate to the administration or operation of the entity; and
  • are not otherwise charged as an investment fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.

Advice fees

A fee is an advice fee for a superannuation product if:

  • the fee relates directly to costs incurred by the trustee of the superannuation entity because of the provision of financial product advice to a member by:
    • a trustee of the entity; or
    • another person acting as an employee of, or under an arrangement with, the trustee of the entity; and
  • those costs are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an insurance fee.

Buy-sell spreads

A buy-sell spread for a superannuation product means a fee to recover transaction costs incurred by the trustee of the superannuation entity in relation to the sale and purchase of assets of the entity.

Exit fees

An exit fee for a superannuation product means a fee to recover the costs of disposing of all or part of members’ interests in the superannuation entity.

Indirect cost ratio

Any fee not charged directly from the member’s account but which reduces the member’s returns is included as an indirect cost ratio.

Investment fees

An investment fee for a superannuation product is a fee that relates to the investment of the assets of a superannuation entity and includes:

  • fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and
  • costs incurred by the trustee of the entity that:
    • relate to the investment of assets of the entity; and
    • are not otherwise charged as an administration fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.

Switching fees

A switching fee for a superannuation product means a fee to recover the costs of switching all or part of a member’s interest in the superannuation entity from one class of beneficial interest in the entity to another.

Administration fees

An administration fee for a superannuation product is a fee that relates to the administration or operation of the superannuation entity and includes costs incurred by the trustee of the entity that:

  • relate to the administration or operation of the entity; and
  • are not otherwise charged as an investment fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.

Insurance fee

A fee is an insurance fee if the fee relates directly to either or both of the following:

  • insurance premiums paid by the trustee, or the trustees, of a superannuation entity in relation to a member or members of the entity;
  • costs incurred by the trustee, or the trustees, of a superannuation entity in relation to the provision of insurance for a member or members of the entity; and
    • the fee does not relate to any part of a premium paid or cost incurred in relation to a life policy or a contract of insurance that relates to a benefit to the member that is based on the performance of an investment rather than the realisation of a risk; and
    • the premiums and costs to which the fee relates are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an advice fee.