Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019 (16 of 2019)

Schedule 1   Fees charged to superannuation members

Part 2   Application provisions

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.