Supplementary Explanatory Memorandum(Circulated by authority of the Assistant Treasurer, the Hon Stuart Robert MP)
Chapter 1 Fees charged to superannuation members (Schedule 1)
Outline of chapter
1.1 Amendment 1 amends Schedule 1 to the Bill to clarify that the fee cap applies to members that have a final balance of less than $6,000 for their MySuper or choice product in an income year, even where they stop holding the product during the year.
Detailed explanation of the amendments
1.2 Amendment 1 amends Schedule 1 to omit and substitute paragraph 99G(1)(b) to clarify that the fee cap on low balances applies to members whose balance for a MySuper or choice product is below $6,000 on the last day in the income year that the member holds the product.
1.3 The Amendment aligns the provision with its original intent that the fee cap applies for members that stop holding a product during the year as well as those members who hold a product for the whole year or start to hold a product during the year.
1.4 As with members that start to hold a MySuper or choice product during the income year, the amount of the fee cap for members that stop holding a product during the income year is apportioned to the number of days during the income year that the member held the product.