Additional explanation of income stream fees and costs

No adviser commission

First State Super does not pay any commission to advisers. If you receive advice from FSS Financial Planning relating to your First State Super account, a fee for this advice will be deducted from your First State Super account at the time the advice is received, unless you choose to pay for the advice directly. For more information about FSS Financial Planning, click here.

You can also receive comprehensive advice from FSS Financial Planning about your broader financial circumstances in addition to specific advice about your First State Super account. The cost of this advice varies depending on the
complexity of your financial affairs. You can have the portion of this fee that relates to your First State Super account deducted from your account eg. if you receive advice and the fee is $2,000 and 30% of this advice relates to your
First State Super account, you can choose to have $600 deducted from your account in part payment of the full fee. This example is illustrative only based on the factors stated and should not be taken to contain or provide an estimate of the financial advice fee payable or the amount that can be deducted from your First State Super account.

Investment management fees

Investment management expenses include the fees paid to asset consultants, investment managers, the custodian and other costs of managing the investments of the Fund.

The cost for each investment option varies according to the cost of managing the
underlying investment portfolios. For example, it is more expensive to manage share (equity) investments than cash investments.

The table shows the estimate of investment management expenses for the year
ended 31 December 2009.

Service fees

The only service fees that the Fund currently charges (apart from an investment switching fee) are set out in the table below:

Transaction costs

You do not incur direct transaction costs (and the Trustee does not apply a buy/sell spread) when setting up your account or making switches or withdrawals, other than the investment switching fee and withdrawal
fee shown in the fee table here. Transaction costs (such as brokerage and commission) are taken into account at the time the assets of the Fund are valued.

Additions or alterations to fees and charges

The investment fee relates to investment costs and is an estimate only because it cannot be precisely calculated in advance. After the end of each financial
year, we will advise you of the actual investment fee for the previous financial year on our website at What’s new at First State Super.

All fees and costs may be revised by the Trustee from time to time. For example, fees and charges may increase when there are changes in superannuation
law, or there are increases in fees charged by First State Super’s service providers. The Trustee may also introduce new fees and charges. The Trustee
will give you at least 30 days prior notice if there is an increase in fees and charges or if a new fee or charge is introduced that affects your income stream account.

Reserves

The Trustee may maintain reserves to manage First State Super’s liabilities. The reserve accounts may be made up of interest earned on contributions received by the Trustee but not yet allocated to members and administration fees. The Trustee uses this account to pay the administrator’s fees and any other administration and operating expenses of the Trustee
or the Fund. Any excess retained in the account is ultimately applied for the benefit of the membership as a whole.

Tax

For more information on the amount of tax payable, see Tax and income streams.

Performance fees

The Trustee has negotiated performance fee arrangements with several of its investment managers. These investment managers are entitled to a base
percentage fee which is usually below the normal active manager fee. A performance fee may be payable once performance above an agreed level has been reached and is typically capped at an upper percentage limit. These
arrangements are subject to change. The method of calculation may vary between agreements but generally these fees are calculated as a percentage of the investment returns that exceed the agreed level of return. Estimated performance fees are included in the estimate of management costs set out 
above under Investment management fees.

Rebates and tax credits

First State Super income streams are not subject to tax in the Fund. No tax rebates or credits are received in respect of fees and costs paid by income stream members.