1. Activity fees are only applied to services used by a member. Fees for a family law split (ie money is withdrawn for a spouse as part of a divorce or separation) are the only AvSuper activity fees. A split costs $205 per person (deducted for each person’s entitlement) and determining the value of a defined benefit for a family law court costs $250 (payable by cheque). See our family law fact sheet for details.
2. Transaction costs may include brokerage, buy-sell spreads (for some of our managers), termination costs, settlement costs (including custody costs), clearing costs and stamp duty on investment transactions (that is, costs relating to purchase and sale of fund assets including costs incurred outside the Fund in relation to underlying investments). These costs are an additional cost to members, and are shown separately in the Fees and Costs Summary above (based on estimates reflecting the experience of the Fund for the year ending 30 June 2024), in relation to each investment option. They are reflected in the calculation of weekly unit prices.
3. Insurance fees apply for any insurance cover you may have. The insurance fees depend on whether you are a Corporate Division or Public Offer Division member. If you cease to be a Corporate member because your employment with a Corporate employer ceases, and you are transferred to the Public Offer division, insurance fees for any insurance cover will change from the date employment ceased and may be higher. For information about insurance fees and how and when they are payable refer to the Insurance guide.
4. The cost of our Member Advice Consultants providing factual information and general advice about AvSuper accounts, including in relation to choosing investment options and contribution strategies, is included within the administration fees and costs for existing members. For further information about advice services that AvSuper’s advisers can provide, refer to the AvSuper Financial Services Guide. If a member requires personal intrafund advice, including advice about AvSuper’s income streams, which takes into account personal objectives or needs, additional advice fees may apply to cover the costs of preparing an SOA. These costs will be explained to you before the advice is given and are not negotiable. Advice fees for personal advice range from $300-$2,000 depending on the nature of the advice, and are payable directly by you or (if you consent) may be deducted from your account. The cost of advice relating to non-superannuation matters cannot be deducted from your AvSuper account. AvSuper advisers do not receive any commissions on advice given.
5. Investment fees and costs include estimated performance fees and indirect costs relating to underlying investments. The investment fees and costs reflect that there has been a significant underlying investment manager change since 30 June 2024 which impacts the anticipated costs for the 24/25 financial year. This provides a more reasonable indication of the estimated ongoing costs. Some of AvSuper’s investment managers may be eligible for additional fees (called performance fees) if they exceed agreed targets for assets they manage. Where applicable, performance fees may affect investment fees and costs and are taken into account in the calculation of unit prices. When performance returns for an investment option are higher, the performance fees (and investment fees and costs) for that option will also be higher. Performance fees for each investment option, based on the calculated average performance fees over the 5 years to 30 June 2024, are shown in the table below and are subject to change.
6. Where applicable, GST payable by the Trustee (less reduced input tax credits) and stamp duty has been included in the fees shown in the table above. Other taxes may apply – see section 7 of the PDS for other taxes. The benefit of any tax deductions the Fund may get for insurance related expenses deducted from member accounts are generally passed on via direct rebates to relevant member accounts. Tax deductions for investment related expenses are returned to members via unit prices.
7. The Trustee maintains an Operational Risk Financial Requirement (ORFR) reserve to ensure adequate financial resources based on a target funding level set by the Trustee) to cover losses arising from significant operational risks and risk events (not otherwise covered). A deduction of up to 0.13% of assets may be taken into account in the calculation of unit prices to maintain the ORFR at an appropriate level. As at the date of preparation of this PDS, there is no deduction in unit prices for the ORFR however this may change without prior notice. We will advise members if a deduction is required to increase beyond 0.13% p.a.. The Trustee may change the target funding level or maximum allowable deduction, or make other deductions to replenish the ORFR reserve, if required or considered necessary or appropriate. Information about the ORFR is included in the Fund’s Annual Report.
8. The Fund maintains an Administration Reserve which represents that pool of funds required to meet the general operating and administration costs of the Fund and any unexpected or otherwise unforeseeable operating costs that may arise. Administration fees are deducted from members’ accounts to fund the Reserve. Where the Fund receives tax benefits arising from tax deductions for Fund expenditure paid from the Reserve, those tax benefits are applied back to the Reserve, and taken into account when determining the funding requirements of the Reserve. The funding requirements of the Reserve are forecast on a rolling basis and regularly reviewed by the Trustee.
9. We may change or add new fees at any time without your consent, notifying members at least 30 days before such changes where required. Estimated fees or costs may vary from time to time without prior notice.
A fee is an activity fee if:
- the fee relates to costs incurred by the trustee of AvSuper that are directly related to an activity of the trustee:
- that is engaged in at the request, or with the consent, of a member; or
- that relates to a member and is required by law; and
- those costs are not otherwise charged as administration fees and costs, investment fees and costs, transaction costs, a buy-sell spread, a switching fee, an advice fee or an insurance fee..
Administration fees and costs
Administration fees and costs are fees and costs that relate to AvSuper’s administration or operation and includes costs incurred by the AvSuper Trustee that:
- relate to the administration or operation of the entity; and
- are not otherwise charged as investment fees and costs, a buy-sell spread, a switching fee, an activity fee, an advice fee or an insurance fee.
A fee is an advice fee if:
- the fee relates directly to costs incurred by the AvSuper Trustee because of the provision of financial product advice to a member by:
- a trustee of AvSuper; or
- another person acting as an employee of, or under an arrangement with, the AvSuper Trustee; and
- those costs are not otherwise charged as administration fees and costs, investment fees and costs, a switching fee, an activity fee or an insurance fee.
A buy-sell spread is a fee to recover transaction costs incurred by the trustee of AvSuper in relation to the sale and purchase of assets of the entity.
An exit fee is a fee, other than a buy-sell spread, that relates to the disposal of all or part of members’ interests in AvSuper.
Investment fees and costs
Investment fees and costs are fees and costs that relate 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 incurred by the trustee of the entity that:
i. relate to the investment of assets of the entity; and
ii. are not otherwise charged as administration fees and costs, a buy-sell spread, a switching fee, an activity fee, an advice fee or an insurance fee.
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 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.
Transaction costs are costs associated with the sale and purchase of assets of the superannuation entity other than costs that are recovered by the superannuation entity charging buy-sell spreads.