Your administration fees are changing

 

From 1 February 2020 the administration fees charged for both super and income stream accounts are changing. Find out more about what these changes mean for you.

We work hard to keep fees as low as possible and haven’t increased the super account keeping fee for over ten years (over five years for income stream accounts). However, changes to Government regulations and improvements to the products and services we provide mean that it now costs more to run Cbus and administer your account. 

Fees for super members

The table below outlines the administration fees that will be charged from 1 February 2020. From this date, you can find comprehensive fee details in our fees and charges section.

Type of fee Amount How and when paid
Administration fee*

$2.00 a week

Plus

Trustee operating cost of 0.19% a year ($1.90 for each $1,000 – up to a maximum of $1,000 a year)

Deducted from your account at the end of each month or when you close your account.

Cbus claims a tax deduction for administration costs, which reduces the Trustee operating cost.

* If your account balance for a product is less than $6,000 at the end of the financial year, the total combined amount of administration fees, investment fees and indirect costs charged to you is capped at 3% of your account balance. Any amount charged above this cap will be refunded to you.

The Trustee operating cost is reviewed each year and ranges up to 0.25%.

Example of annual fees and costs for Growth (Cbus MySuper)

Below is an example of how the fees and costs can affect your super over one year. You can use this to compare Cbus with other super funds.

Type of fee Amount How and when paid
Investment fee 0.65%* a year ($6.50 for each $1,000)

For every $50,000 you have in the MySuper product you’ll be charged $325 each year.

PLUS

Administration fees

$104 ($2.00 a week)

Plus

0.19% ($1.90 for each $1,000 invested)

And you’ll be charged $104 ($2.00 a week) regardless of your balance

Plus

$95.

EQUALS

Cost of product

  If your balance was $50,000, then for that year you’ll be charged fees of $524 for the Growth (Cbus MySuper) option.

*Estimated fee based on the actual fee from the 2018/19 financial year. The fee usually changes from year to year and is different for each investment option. The actual fee will be determined at the end of the financial year and published on your 30 June Statement.

Additional fees may apply.

For more about the changes to your fees read the fee change notice.

Fees for income stream members

The table below outlines the administration fees that will be charged from 1 February 2020. From this date, you can find comprehensive fee details in our fees and charges section.

Type of fee Amount How and when paid
Administration fee*

$2.00 a week

Plus

Trustee operating cost of 0.19% a year ($1.90 for each $1,000 – up to a maximum of $1,000 a year)

Deducted from your account at the end of each month or when you close your account.

Cbus claims a tax deduction for administration costs each year which is used to reduce the Trustee operating cost. Before the deduction, for the 2019/20 financial year this is 0.24% (gross of tax) for transition to retirement accounts and 0.19% for fully retired accounts.

* If your account balance for a product is less than $6,000 at the end of the financial year, the total combined amount of administration fees, investment fees and indirect costs charged to you is capped at 3% of your account balance. Any amount charged above this cap will be refunded to you.

The Trustee operating cost is reviewed each year and ranges up to 0.25%.

Example of annual fees and costs for the Conservative Growth (default) investment option

This table gives an example of how the fees and costs in the Conservative Growth investment option can affect your investment over a one year period. You can use this table to compare Cbus Super Income Stream with other income stream products.

Example – Conservative Growth (default) investment option Balance of $50,000 in the Transition to Retirement option Balance of $50,000 in the Fully Retired option
Investment fee 0.46% For every $50,000 you have in the Conservative Growth option you’ll be charged $230 each year

0.44%

For every $50,000 you have in the Conservative Growth option you’ll be charged $220 each year

PLUS

Administration fees

$104

($2 per week)

Plus

0.19% ($1.90 for each $1,000 invested

And you’ll be charged $104 ($2.00 a week) regardless of your balance

Plus

$95

$104

($2 per week)

Plus

0.19% ($1.90 for each $1,000 invested)

 

And you’ll be charged $104 ($2.00 a week) regardless of your balance

Plus

$95

EQUALS

Cost of product

  If your balance was $50,000 then for that year you’ll be charged fees of $429   If your balance was $50,000 then for that year you’ll be charged fees of $419

*Estimated fee based on the actual fee from the 2018/19 financial year. The fee usually changes from year to year and is different for each investment option. The actual fee will be determined at the end of the financial year and published on your 30 June Statement.

Additional fees may apply.

For more about the changes to your fees read the fee change notice.

Simplifying the naming of your administration fees

From 1 February 2020, we will no longer be referring to an account keeping fee or Trustee operating cost. Both fees will simply be called your administration fees – made up of  the above weekly account keeping fee and percentage amounts.

Together, these two components cover the day to day administration of your account, the other costs associated with running Cbus, and providing you with products and services you need – now and into retirement.

Fee changes and your investment returns

In the past, we’ve deducted the Trustee operating cost from your investment returns before paying them into your account. From 1 February 2020, this fee will be paid directly from your account at the end of each month (just like your account keeping fee).

Whether the Trustee operating cost is deducted from your investment return or straight from your account doesn’t affect how much super you have, but it does make tracking your fees each month easier.

Example

How the two approaches compare for someone with a starting account balance of $10,000 is shown below. As you can see, the total balance at the end of the year doesn’t change if the Trustee operating cost is paid out of your account instead of from your returns. 

This example is provided for illustration purposes only. The figures shown are based on an investment return of 7% (after all investment fees and costs, excluding Trustee operating cost) and does not include insurance premiums or other fees and costs which may become payable or due. The actual return you receive will depend on the investment option/s you’ve selected.  This example uses the administration fee amounts that apply from 1 February 2020 – a weekly account keeping fee of $2 a week and a Trustee operating cost of 0.19% of your account balance each year.

You can check how your investments have performed by exploring: