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Super Fund Fee's - What To Avoid - Australian Super

Joel Brown • May 18, 2023

Super Fund Fee's - What To Avoid - Australian Super

Australia's largest superannuation fund, Australian Super, has been fined $70 million for double charging fees to some of its members. The fine was imposed by the Australian Prudential Regulation Authority (APRA), which found that Australian Super had failed to properly manage its systems and processes, resulting in members being charged fees for services that they were not receiving.

The affected members were those who had multiple accounts with AustralianSuper, such as a former employer's account and a personal account. AustralianSuper had a process in place to merge these accounts, but it was not always effective. As a result, some members were left with multiple accounts, each of which was being charged fees.

APRA found that AustralianSuper had known about the problem for some time, but had not taken adequate steps to fix it. The regulator also found that AustralianSuper had not been transparent with its members about the issue.

The $70 million fine is the largest ever imposed by APRA on a superannuation fund. It is a significant penalty, but it is unlikely to be the end of the matter. AustralianSuper is also facing legal action from some of its members, who are seeking compensation for the fees that they were overcharged.

The case of AustralianSuper is a reminder that even the largest and most reputable superannuation funds can make mistakes. It is important for members to be aware of the fees that they are being charged and to make sure that they are not being overcharged. If you think that you have been overcharged by your superannuation fund, you should contact the fund and ask for a refund.

In addition to the fine, AustralianSuper has also agreed to take a number of steps to improve its systems and processes. These steps include:

* Implementing a new system to track multiple accounts

* Improving communication with members about the issue of multiple accounts

* Providing refunds to members who have been overcharged

AustralianSuper has said that it is committed to learning from this experience and that it will do everything it can to ensure that it does not happen again.

**What can you do to protect yourself?**

There are a few things that you can do to protect yourself from being overcharged by your superannuation fund:

* **Check your fees regularly.** Superannuation funds are required to provide you with an annual statement that shows all of the fees that you have been charged. Make sure to review this statement carefully and look for any fees that you do not understand.

* **Ask questions.** If you have any questions about your fees, do not hesitate to contact your superannuation fund. They should be able to explain to you what each fee is for and why you are being charged it.

* **Switch funds.** If you are not happy with the fees that you are being charged, you can switch to a different superannuation fund. When you switch funds, you will need to transfer your super balance. This is a relatively simple process and can usually be done online.

By following these tips, you can help to ensure that you are not overcharged by your superannuation fund.

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The information on this website is General Information only and therefore does NOT take into consideration your personal financial situation, objectives and needs. Prior to acting on any information on this website you should consider what is appropriate for your own personal financial situation, objectives and needs. Aus Super Solutions is not associated or affiliated with any super funds, we aren’t a financial advisory firm, we do not sell financial products nor do we give financial advice. Our role is to connect clients with fully licensed financial advisors that operate compliantly under an Australian Financial Services Licence. Aus Super Solutions does not take in any way responsibility for any advice or recommendations provided by the financial advisors. Prior to acting on any advice provided by the financial advisor you should and can ask as many questions as you deem necessary to ensure you have received the right advice for your personal financial situation. All fees and costs must be clearly explained and after speaking with a referred advisor you are under no obligation to commit to any recommendations made nor cost payable to Aus Super Solutions should you decide against the advice provided. Before making any decisions regarding your super you should obtain the super fund’s Product Disclosure Statement (PDS) and consider its contents. However our goal and mission is to only recommend and connect clients with fully licensed financial advisors and firms with established, positive track records in enhancing and servicing their clients financial situation, objectives and needs.