Commonwealth Numbered Acts Commonwealth Numbered ActsSuperannuation Industry (Supervision) Act 1993
1 Subsection 10(1) (definition of exit fee )
Omit "subsection 29V(6)", substitute "subsection 99BA(2)".
2 Paragraph 29TC(1)(d)
After "fee subsidisation by employers", insert "or to comply with section 99G (fee cap on low balances)".
3 Paragraph 29V(1)(e)
Repeal the paragraph.
4 Paragraph 29V(2)(b)
Omit ", an exit fee".
5 Subparagraph 29V(3)(b)(ii)
Omit ", an exit fee".
6 Subsection 29V(6)
Repeal the subsection.
7 Paragraphs 29V(7)(b), (8)(b) and (9)(c)
Omit ", an exit fee".
8 Paragraphs 29VA(5)(a), (6)(a) and (7)(a)
Omit ", an exit fee".
9 At the end of section 29VA
Add:
Fees for members with low balances
(11) This rule is satisfied if:
(a) the fee is an administration fee or investment fee; and
(b) the fee is charged at a reduced amount, in accordance with section 99G, in relation to one or more members of the fund who hold the MySuper product; and
(c) in relation to the remaining members of the fund who hold the MySuper product, the fee would satisfy a charging rule in another subsection of this section if those were the only members of the fund who held the MySuper product.
10 Paragraph 29VB(1)(d)
Omit "(3) or (4)", substitute "(3), (4) or (4A)".
11 After subsection 29VB(4)
Insert:
Reduced fees for employees with low balances
(4A) Each of the following is satisfied:
(a) the administration fee is charged at a reduced amount, in accordance with section 99G, in relation to one or more employee members of the fund;
(b) in relation to the remaining employee members of the fund, the administration fee would be in accordance with subsection (2), (3) or (4) if those were the only employee members of the fund.
12 Paragraph 29VB(5)(b)
Omit ", an exit fee".
13 Paragraph 29VE(c)
Repeal the paragraph, substitute:
(c) either:
(i) the cap is the same for all of those members; or
(ii) if the administration fee is charged at a reduced amount, in accordance with section 99G, in relation to one or more of those members--the cap is the same for all of the remainder of those members; and
14 After paragraph 31(2)(db)
Insert:
(dc) the calculation of a member's account balance with the fund on a particular day, or a member's account balance with the fund on a particular day that relates to a choice product or MySuper product;
15 After section 99B
Insert:
(1) The trustee, or the trustees, of a regulated superannuation fund or an approved deposit fund must not charge exit fees, except in circumstances prescribed by the regulations.
(2) An exit fee is a fee, other than a buy-sell spread, that relates to the disposal of all or part of a member's interests in a superannuation entity.
16 Section 99C (heading)
Omit " , switching fees and exit fees ", substitute " and switching fees ".
17 Subsections 99C(1) and (2)
Omit ", a switching fee or an exit fee", substitute "or a switching fee".
18 At the end of Part 11A
Add:
Application
(1) This section applies if:
(a) the trustee, or trustees, of a regulated superannuation fund offer a choice product or MySuper product; and
(b) on the last day of a year of income of the fund a member of the fund has an account balance with the fund that relates to the product that is less than $6,000.
Fee cap for a member who holds the product for the whole year
(2) If the member holds the product for the whole year, the trustee or trustees of the fund must not charge capped fees and costs to the member in relation to the product for the year the total combined amount of which exceeds the amount worked out as follows:
where:
"fee cap percentage " means the percentage prescribed under subsection (4).
"member's account balance for the product on the last day of the year " means so much of the member's account balance with the fund on that day as relates to the product.
Capped fees and costs
(3) For the purposes of this section, the following are capped fees and costs charged to the member in relation to the product for the year:
(a) administration fees charged to the member in relation to the product for the year;
(b) investment fees charged to the member in relation to the product for the year;
(c) an amount worked out in accordance with the regulations (if any) that:
(i) is not charged to the member as a fee; and
(ii) is incurred by the trustee or the trustees of the fund in relation to the year; and
(iii) relates to the administration of the fund or the investment of the assets of the fund.
Fee cap percentage
(4) The regulations may prescribe, for the purposes of this section, a fee cap percentage of no more than 3%.
Fee cap for member who holds the product for part of the year
(5) If the member holds the product for only part of the year, the trustee or trustees of the fund must not charge capped fees and costs to the member in relation to the product for the year the total combined amount of which exceeds the amount worked out as follows:
where:
"fee cap for the whole year " means the total combined amount of capped fees and costs that could be charged to the member in relation to the product for the year under subsection (2), if:
(a) the member held the product for the whole of the year; and
(b) so much of the member's account balance with the fund on the last day on which the member held the product during the year as relates to the product were the member's account balance for the product on the last day of the year.
Refund of excess
(6) The trustee or trustees of the regulated superannuation fund are taken to have complied with this section if any amount by which the total combined amount of capped fees and costs charged to the member in relation to the product for the year exceeds the maximum permitted under subsection (2) or (5) is refunded to the member within 3 months after the end of the year.
No breach of section 99E
(7) To avoid doubt, the trustee or trustees of the regulated superannuation fund do not breach section 99E by complying with this section.
Part 2 -- Application provisions
19 Application of this Schedule
The amendments made by this Schedule apply to fees and other amounts in relation to years of income of a regulated superannuation fund ending on or after 1 July 2019.
20 Fee cap for transition years
(1) This item applies in relation to a year of income of a regulated superannuation fund if:
(a) the trustee, or trustees, of the fund offer a choice product or MySuper product; and
(b) on the last day of the year a member of the fund has an account balance with the fund that relates to the product that is less than $6,000; and
(c) the year is the first year of income of the fund to end on or after 1 July 2019; and
(d) the number of days in the year that occur on or after 1 July 2019 is fewer than 365.
(2) Section 99G of the Superannuation Industry (Supervision) Act 1993 applies in relation to the year as if subsection (2) were omitted and replaced with:
(2) If the member holds the product for the whole year, the trustee or trustees of the fund must not charge capped fees and costs to the member in relation to the product for the transition period the total combined amount of which exceeds the amount worked out as follows:
where:
"fee cap percentage " means the percentage prescribed under subsection (4).
"member's account balance for the product on the last day of the year " means so much of the member's account balance with the fund on that day as relates to the product.
"transition period " means the period beginning on 1 July 2019 and ending on the last day of the first year of income of the fund that ends on or after 1 July 2019.
(3) Section 99G of the Superannuation Industry (Supervision) Act 1993 applies in relation to the year as if subsection (5) were omitted and replaced with:
(5) If the member holds the product for only part of the year, the trustee or trustees of the fund must not charge capped fees and costs to the member in relation to the product for the transition period the total combined amount of which exceeds the amount worked out as follows:
where:
"fee cap for the whole year " means the total combined amount of capped fees and costs that could be charged to the member in relation to the product for the transition period under subsection (2), if:
(a) the member held the product for the whole of the year; and
(b) so much of the member's account balance with the fund on the last day on which the member held the product during the year as relates to the product were the member's account balance for the product on the last day of the year.
"transition period " means the period beginning on 1 July 2019 and ending on the last day of the first year of income of the fund that ends on or after 1 July 2019.