The Protecting Your Super legislation that passed the Senate last week could see the fees slashed to less than three per cent on five million superannuation funds, with AMP, Hostplus, and ANZ OnePath impacted the most.
The reforms would cut fees on low-balance funds, with these funds copping the biggest impacts as accounts under $10,000 represent 34, 32 and 41 per cent of AMP Super’s, Hostplus’, and ANZ OnePath’s total accounts respectively.
Rest, Sunsuper, BT Financial Group, and Australian Super also all have large numbers of small funds so were set to see fee cuts too.
“It’s time younger super fund members stopped having to subsidise older super fund members. It’s simply a matter of doing what is fair,” director of Rainmaker, who produced the above analysis of Australian Prudential Regulation Authority (APRA) fund sizes, Alex Dunnin, said.
“Successful passage of these fee reforms should either see the end of flat dollar fees which for young, low-balance members are regressive, or funds will introduce account balance and age thresholds for newly designed fees.”