Sneaky super fees explained

Julie is outraged that she is expected to pay additional fees through her superannuation to fund the ‘fixing’ of the superannuation system. But has she been given the correct information?

Julie

I just looked at my superannuation statement and noticed two lots of fees that total over $300. Upon checking, I have discovered that they are apparently government fees designed to assist with the revamp of the superannuation system. Even though people like me, who are paying for it, will be dead by the time the system becomes workable. Is this just a new excuse for a sneaky tax?

I am left wondering why ordinary people like me are required to pay to have government revamp a super system, which was created by the ‘smart people’ in government? Added to this are the new bank fees the government wants to introduce on all deposits, because these so-called ‘smart people’ have failed to be forward thinking. All they can do is produce fee upon fee to fix their mistakes – and we end up paying.

Correct me if I am wrong but I thought superannuation was invented to ensure that working-class people like me, are able to pay their own way in old age? If the government keeps taking money from my superannuation fund as it does now, it won’t be long before the government is funding my Age Pension. 

The majority of baby boomers started with nothing, worked hard, did without, paid and their taxes. Now we are seen as greedy individuals taking advantage of the system, when most of us expect nothing and, almost always get nothing, but we are happy to look after ourselves. 

We did not create the system, but now we have to pay to fix it. I’m gobsmacked.

Response produced by Adam Gee

We asked superannuation expert, Adam Gee from SuperRatings, to explains what were these new fees and will everyone pay them.

A number of funds are passing on the costs associated with many of the regulatory changes to superannuation over recent years. This is generally called a ‘Stronger Super Levy’ and consists of an asset-based additional administration fee. Many funds have also been required to build up an Operational Risk Financial Reserve to comply with government requirements and have passed this on to members through an additional ‘ORFR Levy’, which is a 7 – 8 basis point charge.

Unfortunately, given the raft of changes in recent years, a number of funds have chosen to pass on the costs, which is likely to be the fees being referred to by Julie.

Hopefully this clarifies the fees and why they have been charge. We hope this serves as a reminder of why it is important to regularly review your superannuation statements and whether or not the fund is the correct one for you.



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