AustralianSuper to Increase Member Fees for First Time in Four Years

AustralianSuper, one of Australia's largest superannuation funds, will increase its administration fees for accumulation members, marking the first such hike in four years. The change is set to take effect on October 31.

The administration fee for accumulation members will rise from 0.1 per cent to 0.12 per cent. For members with balances up to $250,000, this translates to an increase of up to $1.83 per week. Those with higher balances, between $300,000 and $500,000, will see their weekly fees rise to $5.97.

AustralianSuper, which serves approximately 3.6 million members, stated that the fee adjustment is necessary to cover investments in member services. Rose Kerlin, deputy chief executive of AustralianSuper, explained that the fund has brought more member-facing services in-house, enhanced account security, expanded access to advice and guidance, and improved digital tools. "These investments are helping us provide simpler, safer and more personalised experiences for members, and they are working," Kerlin said.

This announcement follows a recent report by Super Consumer Australia, which found that the fund failed to answer 90 per cent of calls during a mystery shopper study. The study tested twenty major super funds, all of which reportedly performed poorly in customer service. Xavier O'Halloran, chief executive of Super Consumers Australia, emphasized the need for better customer support, stating, "People don't just need a healthy super balance to have a dignified retirement. They need to know their fund will pick up the phone when they're grieving, need to access their money or ask a simple question and actually help them."

Kerlin affirmed the fund's commitment to managing costs, investing for the long term, and delivering the necessary support, products, and performance for members' retirement goals. She added, "As a profit-to-member fund, every dollar we collect in fees is used to operate and strengthen the fund on behalf of members."