The Protecting Your Super legislation that passed the Senate last week could see the fees slashed to less than three per cent on five million superannuation funds, with AMP, Hostplus, and ANZ OnePath impacted the most.
The reforms would cut fees on low-balance funds, with these funds copping the biggest impacts as accounts under $10,000 represent 34, 32 and 41 per cent of AMP Super’s, Hostplus’, and ANZ OnePath’s total accounts respectively.
Rest, Sunsuper, BT Financial Group, and Australian Super also all have large numbers of small funds so were set to see fee cuts too.
“It’s time younger super fund members stopped having to subsidise older super fund members. It’s simply a matter of doing what is fair,” director of Rainmaker, who produced the above analysis of Australian Prudential Regulation Authority (APRA) fund sizes, Alex Dunnin, said.
“Successful passage of these fee reforms should either see the end of flat dollar fees which for young, low-balance members are regressive, or funds will introduce account balance and age thresholds for newly designed fees.”
The Protecting Your Super reforms were now to put before the House of Representatives, but with just a few sitting days left before the election was slated to be held, it’s unclear when they would be heard.
Agree with the comments in this article. We should stop subsidising and why not extend it to say the Age pension as well. As a young person why should I be subsidizing someone’s insurance premiums, their health, medicare, social security. What about these old people driving around using roads and not paying taxes for anything. I don’t have kids so why should I be forced to pay taxes that fund education, family tax benefits. It’s time we go back to survival of the fittest. Commissions also should be banned because that’s a form of subsidization as well. Poor and young single income people who can’t afford Insurance advice should just pay full freight and be stopped being subsidized as well. Pay your own way makes sense.