In the recent Federal budget, it was proposed that there will be a review of the fees charged on superannuation balances under $6,000. The main changes being a cap on the fees of 3% and no exit fees.
Note – administration fees are the fees charged by the product provider and are in addition to any adviser fees.
Government estimates have suggested that some industry super funds are receiving over 8% in administration fees on balances under $1,000. HostPlus and AustralianSuper have been named as the leading offenders, charging 9.25% and 8.55% on these accounts respectively. In addition, Hesta, CBUS and Rest were also mentioned.
Geoff and Tristan of Brisbane Money Management have been bringing this to their client’s attention for many years. If you, or someone you know might be in this situation, we encourage you to be in touch if you would like to discuss your options going forwards.