A small percentage can make a huge difference in the long term when it comes to costs and fees.
Super is a long-term product, so it’s a good idea to compare us with the market and make sure you’re getting the best value for money.
Because we’re profit-for-member, we work to keep our fees as low as possible. Your fees go directly towards the costs of managing your investments, and providing great member services such as seminars and financial advice.
4 things to consider with fees and costs
Look at the total cost
Super funds can calculate their fees in different ways, so make sure that you’re comparing apples with apples, and look at the total cost. Every MySuper fund will have a product dashboard available on their website that helps you to compare costs.View product dashboard
It’s about more than just fees
Returns depend on a range of factors, not just fees. Investment returns are also a big factor in growing your superannuation savings, although a fund or option that has performed well in the past won't necessarily perform well in the future. You should also consider the level of service and features like simple advice that can help you to manage your super effectively. An independent comparison service can help you to compare different super funds.Compare funds
Are you paying fees for multiple accounts?
If you have multiple accounts then you’re paying for multiple sets of fees. Consider if it’s in your best interests to combine your accounts into one and save on fees.Combine your super
Think about your insurance needs
Insurance is often provided automatically with your super unless you opt out. Assess what cover you need, then check what your level of cover is and how much it costs, as premiums and levels of cover available will differ.Calculate costs and cover
Investment fees reflect a broad range of fees and costs associated with the purchase/sale and ongoing management of investments of the fund and underlying investment vehicles. This includes fees paid to investment managers, as well as amounts paid to a variety of third parties such as our custodian, brokers and government authorities. These amounts are paid from the assets of the investment option before we calculate the unit price and are not deducted directly from your account.
Investment fees may vary from year to year and cannot be precisely calculated in advance.
Important: The investment fees shown below are indicative only and are based on the fees and costs for each investment option for the 12 months to 30 June 2017, including several components which are estimates only. The actual amount you'll pay in future years will depend on the actual fees, costs and taxes incurred by the trustee in managing the investment option.
Estimated investment fees (% per year)
|Investment option||Investment management costs||Performance- related costs||Explicit transaction costs||Other fees and costs||Total investment fees|
|Diversified Socially Responsible Investment||0.40%||0.12%||0.10%||0.13%||
|Australian Equities Socially Responsible Investment||0.36%||0.00%||0.12%||0.03%||
|Australian Fixed Interest||0.06%||0.00%||0.00%||0.03%||
|International Fixed Interest||0.06%||0.00%||0.00%||0.06%||
Implicit transaction, borrowing and property operating costs may also affect your investment but are not included above. See the 'Other investment costs' tab.
Other investment costs
|Investment option||Estimated implicit transaction costs||Borrowing costs||Property operating costs|
|Diversified Socially Responsible Investment||0.08%||0.09%||0.08%|
|Australian Equities Socially Responsible Investment||0.26%||0.00%||0.00%|
|Australian Fixed Interest||0.03%||0.00%||0.00%|
|International Fixed Interest||0.07%||0.00%||0.00%|
What do these costs include?Show more
Investment management costs
Investment management costs reflect fees paid to investment managers and specialist investment consultants, as well as the costs of the First State Super investment team.
Performance related costs
Performance fee arrangements are in place with a number of external investment managers. Performance-related costs reflect the performance fees incurred in relation to these managers for the year ending 30 June 2017.
Explicit transaction costs
Explicit transaction costs include brokerage, clearing fees, stamp duty, commissions, buy/sell spreads and due diligence costs.
Other fees and costs
Other fees and costs includes fees paid to the custodian to hold the assets of the fund, amounts paid to accounting/ audit and tax specialists, costs associated with the fund's securities lending program and the 0.04% trustee charge in relation to the pre-mixed investment options (i.e. the High Growth, Growth, Diversified SRI, Balanced Growth and Conservative Growth investment options), as well as costs associated with the use of over-the-counter (OTC) derivatives.
Total investment fees
Total investment fees reflects the total of investment management costs, performance – related costs, explicit transaction costs and other fees and costs.
Estimated implicit transaction costs
Implicit costs include bid/offer spreads and for listed securities, may include an estimate of market impact.
Borrowing costs include loan establishment costs and interest payments and are most significant
for illiquid asset classes such as property and infrastructure where asset prices can be substantial.
Property operating costs
Property operating costs include a range of costs associated with managing property investments, for example council and water rates, utilities and lease renewal costs.
For more information refer to the fees and costs section of the Member Booklet Supplement: Fees and other costs.
Your fees explained
Activity feesShow more
A fee is an activity fee if:
a) the fee relates to costs incurred by the trustee of the superannuation entity that are directly related to an activity of the trustee:
(i) that is engaged in at the request, or with the consent, of a member; or
(ii) that relates to a member and is required by law; and
b) those costs are not otherwise charged as an administration fee, an investment fee, a buy-sell spread, a switching fee, an exit fee, an advice fee or an insurance fee.
Our activity fees
The only activity fees that the fund currently charges are set out in this table:
|Type of fee or cost||Amount||How and when paid|
|Family law fees: Application for information – This fee is for providing information as required under the Family Law Act.||$110||Payable to the trustee by the person making the request for information at the time a request is made.
|Splitting an account||$88||The fee is shared equally between both parties and deducted from each party’s benefit at the time the benefit is split unless all of the benefit is going to the non-member spouse (in which case the non-member spouse pays the full fee).|
|No-TFN tax recovery fee||$100||This fee will apply if we arrange a refund of the tax deducted from your account for failing to provide a TFN. The fee is deducted at the time of the refund being applied to your account.|
Administration feesShow more
An administration fee is a fee that relates to the administration or operation of the superannuation entity and includes costs that relate to the administration or operation, other than:
(a) borrowing costs; and
(b) indirect costs that are not paid out of the superannuation entity that the trustee has elected in writing will be treated as indirect costs and not fees, incurred by the trustee of the entity or in an interposed vehicle or derivative financial product; and
(c) costs that are otherwise charged as an investment fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, and advice fee or an insurance fee.
Our administration fees
The administration fee is $52 per year ($4.33 per month) plus an asset-based administration fee of 0.15% per year.
Advice feesShow more
A fee is an advice fee if:
(a) the fee relates directly to costs incurred by the trustee of the superannuation entity because of the provision of financial product advice to a member by:
(i) a trustee of the entity; or
(ii) another person acting as an employee of, or under an arrangement with, the trustee of the entity; and
(b) those costs are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an insurance fee.
Our advice fees
You will only be charged an advice fee if you agree to receive personal financial advice from one of our financial advisers. The fees will be discussed and agreed with you at that time.
Buy-sell spreadShow more
A buy-sell spread is a fee to recover transaction costs incurred by the trustee of the superannuation entity in relation to the sale and purchase of assets of the entity.
Our buy-sell spread
First State Super does not currently charge a buy-sell spread on any of our investment options.
Exit feesShow more
An exit fee is a fee to recover the costs of disposing of all or part of members‘ interests in the superannuation entity.
Our exit fees
An exit fee of $36 is charged each time a benefit is withdrawn, rolled over, paid to the ATO, or for spouse contribution splits if your spouse's account is with another fund.
Indirect cost ratioShow more
The indirect cost ratio (ICR) for a MySuper product or an investment option offered by a superannuation entity, is the ratio of the total of the indirect costs for the MySuper product or investment option, to the total average net assets of the superannuation entity attributed to the MySuper product or investment option.
A dollar-based fee deducted directly from a member’s account is not included in the indirect cost ratio.
Note: All indirect costs are included in the investment fees shown in the table above.
Insurance feesShow more
A fee is an insurance fee if:
(a) the fee relates directly to either or both of the following:
(i) insurance premiums paid by the trustee of a superannuation entity in relation to a member or members of the entity;
(ii) costs incurred by the trustee of a superannuation entity in relation to the provision of insurance for a member or members of the entity; and
(b) the fee does not relate to any part of a premium paid or cost incurred in relation to a life policy or a contract of insurance that relates to a benefit to the member that is based on the performance of an investment rather than the realisation of a risk; and
(c) the premiums and costs to which the fee relates are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an advice fee.
Our insurance costsI want to calculate my insurance costs
Investment feesShow more
An investment fee is a fee that relates to the investment of the assets of a superannuation entity and includes:
(a) fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and
(b) costs that relate to the investment of assets of the entity, other than:
(i) borrowing costs; and
(ii) indirect costs that are not paid out of the superannuation entity that the trustee has elected in writing will be treated as indirect costs and not fees, incurred by the trustee of the entity or in an interposed vehicle or derivative financial product; and
(iii) costs that are otherwise charged as an administration fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.
Our investment fees
View estimates of these fees to 30 June 2017 for each investment option in the table above.
Switching feesShow more
A switching fee for a MySuper product is a fee to recover the costs of switching all or part of a member’s interest in a superannuation entity from one class of beneficial interest in the entity to another.
A switching fee for a superannuation product other than a MySuper product, is a fee to recover the costs of switching all or part of a member’s interest in the superannuation entity from one investment option or product in the entity to another.
Our switching fees
A $25 switching fee is charged for the second and subsequent switches in a financial year.
The fees shown are the same for MySuper and Choice members. ↩