Keeping a lid on fees
While fees are a necessary part of running our super fund, we believe they should never get out of hand.
Our annual cap on administration fees means if you ever pay more than $1,000 a year, we’ll rebate the difference in the following financial year.
Here are some answers to some of the most common questions asked about the cap.
How is the cap administered?
The administration fee for Accumulation and Income accounts is currently 0.20%1 of your account balance. It’s calculated and deducted daily for each of your investment options.
If you end up paying more than $1,000 in a given financial year, we’ll refund the difference in July of the following financial year as a rebate. To be eligible for the rebate, you’ll need to be a member at the time the rebate is paid.
If you have more than one Accumulation or Income account, we’ll just add up the total administration fees you’ve paid across all of your accounts.
Does the cap apply to the total fees paid on my accounts, or just the administration fee?
It’s just the administration fee. The investment fee (which includes investment base fees and investment performance fees) is separate.
What account will the rebate be paid into?
If you’re eligible for a rebate, we’ll write to you explaining the payment amount and which account the rebate has been applied to. The account we pay the rebate into will depend on a few different factors, like which account the administration fees were charged to, and what accounts you hold at the time the rebate is paid.
Why is there a tax adjustment on the rebate?
This is where things get a little tricky. When the daily administration fee is applied to an Accumulation account, a tax credit is indirectly applied as part of the process. So when we pay you any rebate relating to administration fees, we need to deduct an amount to cover the previously credited tax benefit.
Income accounts are taxed differently, so any fee cap rebate relating to your Income account won’t have this tax adjustment applied.
Will the rebate count towards my concessional contributions cap?
Only if the value of the rebate is 5% or more of your balance on the day it’s paid. As per our existing practices, we’ll report any concessional contribution to the ATO. If you have any questions about this, please get in touch with us.
Where can I find out more about the rebate?
If you’re eligible for a rebate of more than $25, we’ll send you a letter with all the details (including any tax adjustments). You can also view the details in your ‘Account history/transactions’ tab in Member Online.
The fee cap and rebate can get a little complex. So if you’d like to talk to someone about it in more detail, please give us a call on 1300 360 750.
1. QSuper's administration fee went down to 0.20% from 0.22% on 1 July 2015. QSuper's administration fee cap went down to $1000 from $1540 on 1 July 2015.