Superannuation Legislation Amendment (MySuper Measures) Regulation 2013 (155 of 2013)

Schedule 1   Amendments relating to MySuper

Corporations Regulations 2001

60   Clause 218 of Schedule 10

Repeal the clause, substitute:

218 Administration fees and investment fees for a superannuation product

Administration fees

(1) The example of administration fees for a MySuper product or an investment option offered by a superannuation entity is applied to an amount of $50 000 or an amount that is a multiple of $50 000 if clause 215 applies.

Note: In calculating the amount, do not include contributions that may be made during the year.

(2) If there is a range in the amount of administration fees that may be charged for a MySuper product or an investment option offered by a superannuation entity, the example must use the highest administration fees in the range.

Investment fees

(3) The example of investment fees for a MySuper product or an investment option offered by a superannuation entity is applied to an amount of $50 000 or an amount that is a multiple of $50 000 if clause 215 applies.

Note: In calculating the amount, do not include contributions that may be made during the year.

(4) If there is a range in the amount of investment fees that may be charged for a MySuper product or an investment option offered by a superannuation entity, the example must use the highest investment fees in the range.

Indirect costs for a MySuper product or investment option

(5) The example of indirect costs for a MySuper product or an investment option offered by a superannuation entity must be worked out by applying the indirect cost ratio for the MySuper product or the investment option to an amount of $50,000 or an amount that is a multiple of $50,000 if clause 215 applies.

218A Management costs for a managed investment product

(1) The example of management costs for an investment option offered by a managed investment scheme is applied to an amount of $50 000 or an amount that is a multiple of $50 000 if clause 215 applies.

Note: In calculating the amount, do not include contributions that may be made during the year.

(2) If there is a range in the amount of management costs that may be charged for an investment option offered by a managed investment scheme, the example must use the highest management costs in the range.

(3) Management costs that are not deducted directly from a product holder’s account must be calculated using the indirect cost ratio for the relevant investment option offered by the managed investment scheme.

(4) Any percentage based management costs that are deducted directly from a product holder’s account should be added to the percentage amount calculated under subclause (3).

(5) Any dollar based management costs that are deducted directly from a product holder’s account must be shown separately in the management costs cell.

Example 1: Management costs: 2 % deducted directly from your account + 1.6% deducted indirectly.

Example 2: Management costs: $52 per year ($1 per week) deducted directly from your account + 1.6% deducted indirectly.

Example 3: Management costs: $52 per year ($1 per week) + 1% deducted directly from your account + 1.6% deducted indirectly.