AGEST Super. Straight forward. Simple. Fair
Administration Fee Change
Last Updated : 29 Aug 2011
AGEST’s administration fees will increase from 15 October 2011.
The flat dollar monthly fee will increase from $5.00 to $6.50 (or from $60 to $78 per annum).
In addition, a new fee based on the size of the members’ account balance will apply. The fee will be 0.05% of a member’s balance, up to a maximum of $250 per year. This fee will also be deducted monthly.
The same fees will apply to all members.
Administration Fee Examples
We understand that fee increases are never welcome. We keep our fees as low as possible, while ensuring we can meet projected fund expenditure. Even with the new fees in place, AGEST’s fees are amongst the lowest on offer.
The chart above includes administration, investment and performance fees.
Source: SuperRatings
Why are the fees increasing?
AGEST’s running costs have increased faster than the cost of living. This is partly due to new regulatory charges covering the cost of government supervision. Recently the fund was required to pay a one-off Financial Assistance Levy of $0.5m to enable the government to compensate the victims of fraud in another fund.
And, while we remain committed to offering simple and straightforward products, AGEST is becoming more complex to run. For example, growth in our pension means we need to ensure the tax obligations of the fund are appropriately allocated between the accumulation and pension members.
Why introduce a fee based on the size of a member’s account?
The new fee structure is fairer than our current flat fee. On average, higher balance members use more services and are more costly to administer than lower balance members. This means low balance members cross-subsidise higher balance members. Introducing the asset-based fee addresses this, while keeping our overall fees low, and the fee structure simple.
The Good News
We have been able to negotiate a reduction in the cost of insurance. From next year the cost of AGEST’s default Death and TPD insurance will fall, partially off-setting the increase in the administration fee.
Further details will be provided on our website later in the year.