SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993

PART 11A - GENERAL FEES RULES  

SECTION 99G   FEE CAP ON LOW BALANCES  

Application

99G(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

99G(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:


Fee cap percentage × Member ' s account balance for the product on the last day of the year

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

99G(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

99G(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

99G(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:


Fee cap for the whole year × Number of days during the year
365

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

99G(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

99G(7)  
To avoid doubt, the trustee or trustees of the regulated superannuation fund do not breach section 99E by complying with this section.


 

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