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Question

Why are there administration fees on my 30 June statement if my account balance is less than $1,000? I thought member protection applied to small accounts.

Answer

Federal Government legislation limits the amount of fees and charges that can be applied to certain small superannuation account balances.

A small superannuation account is a member account with a balance of less than $1,000 at the end of a member reporting period (generally 30 June each year or date of exit from a fund). The benefit to be protected typically arises from member contributions and employer superannuation guarantee or award contributions.

The Trustee currently applies member protection to limit the total fees (excluding investment management fees, insurance premiums and taxes) charged to your account during the period to be, generally, no greater than the earnings applied to your account.

Member protection may result in an administration fee or withdrawal fee being partly or fully rebated.

In the event that the total earnings of the Fund are less than the total administration fees for all members in a year, we may debit each account in the Fund to pay for the operating costs of the Fund. In these years, account balances below $1,000 may be charged a maximum of $10 in fees.

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