UniSuper has announced it will “significantly reduce” its annual administration fee from 1 October this year, with its $96 annual administration fee to become the lesser of $96 or two per cent of the member’s account balance.
The fund said this would lead to a reduction for the over 100,000 members who have account balances of less than $4,800, against a backdrop of increased focus on fees for low member accounts in the wake of the Productivity Commission’s report and the Federal Budget.
In fact, UniSuper said that this change should satisfy in advance the Budget’s proposed change of a three per cent cap on combined administration and investment fees and costs for low balance members.
Fees should also be reduced in practice by a 15 per cent tax rebate UniSuper said would be passed onto members.
UniSuper chief executive, Kevin O’Sullivan, said the changes would benefit casual, young and new members most, saying it would help them build their account balances more quickly and stop fees eroding their balances.
