Fees as at 1 July 2009
Did you know?
Small differences in both investment performance and fees and costs can have a substantial impact on your long term returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30 year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs.
To find out more
If you would like to find out more, or see how fees and costs affect your circumstances, the Australian Securities and Investments Commission (ASIC) provides a superannuation fee calculator to help you compare
different fee options. Go to www.fido.asic.gov.au.
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This table shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the Fund’s assets as a whole. Taxes and insurance costs are set out in another part of this document. You should read all the information about fees and costs because it is important to understand their impact on your investment.
Fees and costs for particular investment options are set out in Additional explanation of fees and costs.
| Type of Fee or Cost |
Amount |
How and when paid |
| Fees when your money moves in or out of the Fund |
Establishment fee
The fee to open your investment. |
Nil. |
The Fund does not charge an establishment fee. |
Contribution fee
The fee on each amount contributed to your investment –- either by you or your employer. |
Nil. |
The Fund does not charge a contribution fee. |
Withdrawal fee
The fee on each amount you take out of your investment. |
$36 |
Deducted from your account each time a benefit is withdrawn, for spouse contribution splits if your
spouse’s account is with another fund and for payments to the ATO. |
Termination fee
The fee charged to close your investment. |
Nil. |
The Fund does not charge a termination fee.
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| Management Costs |
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Administration: The fees and costs for managing your investment
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Administration fee
$52 per year ($4.33 per month)
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This fee is deducted from your account (in arrears)
at the end of each month (including the months you
start and leave).
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For the amount you pay for specific investment options, click here.
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Investment management expense
A percentage currently estimated to range, depending on the investment option selected, from 0.05% pa ($25 per $50,000) to 0.61% pa ($305 per
$50,000).
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The percentage amounts are estimates of investment management expenses which reflect the actual expenses incurred, including the fees paid to asset consultants, investment managers, the custodian and other costs directly related
to managing the investments of the Fund. The investment management expenses are deducted from the assets of the option before the unit price for an investment option is determined.
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| Service Fees* |
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Investment switching fee
The fee for changing investment options.
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Future contributions: Nil.
Current account balance: No charge for the first switch in a financial year but $25 per subsequent switch.
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Deducted from your superannuation account at the time of the switch. |
* Family law fees, no TFN tax recovery fees and advisor fees may also apply. See additional explanation of fees and costs.
Example of annual fees and costs for a balanced investment option (the Diversified investment option)
The law requires all superannuation fund trustees to set out in a PDS an example of annual fees and costs that apply to a “balanced investment option”,
which typically has a ratio of investment in growth assets to investment in defensive assets as close as practicable to 70:30. The example below allows
you to compare “balanced investment options” in different superannuation funds, regardless of what they are called.
First State Super’s investment option which meets the definition of a “balanced investment option” is the Diversified investment option and an example of annual fees and costs for that option is set out below. This table gives an example of how the fees and costs in the balanced investment option for this product can affect your superannuation investment over a one-year period. You should use this table to compare this product with other superannuation products.
EXAMPLE — the balanced investment option
(the Diversified investment option)1 |
Balance of $50,000 with total
contributions of $5,000 during year |
| Contribution Fees2 |
Nil |
For every $5,000 you put in, you will be charged nil. |
PLUS
Management Costs3 |
0.29%3 + $52 |
And, for every $50,000 you have in the Fund you will be charged $145 each year plus $52 in administration fees regardless of your balance. |
EQUALS
Cost of the Fund |
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If you put in $5,000 during a year and your balance was $50,000, then for that year you will be charged fees of $1972
What it costs you will depend on the investment option you choose and the fees you negotiate with your fund or financial
adviser.4
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1 The Fund’s investment strategy which meets the definition of a “balanced investment option” is the Diversified investment option.
2 Additional fees may apply: Establishment fee – Nil. And, if you leave the Fund, you will be charged a withdrawal fee of $36.
3 This percentage amount is the investment management expense for the Diversified option for the period ended 30 June 2009. See the page Additional explanation of fees and costs.
4 Management costs cannot be negotiated in First State Super.
Note: If you are age 56 or over when you join the Fund and you do not choose an investment option, you will be automatically invested in the Balanced option, not the Diversified option.
Note: The above example is illustrative only and is based on the factors indicated. It should not be taken to provide an estimate of the management costs that would be payable in respect of your account.
More about First State Super's fees and costs
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