7. Fee cap for inactive, small accounts
Inactive, low-balance accounts will also be subject to a fee cap in MySuper and choice products from July 1, 2019. Such accounts, defined as for the insurance amendment above, will be subject to maximum administration and investment fees of 3% per year. Balances are tested at the end of each financial year to determine if the cap applies. Pro-rated caps apply both if the member was not a member of the fund for the full year and in the first year the cap operates.
The information contained in this publication is based on the understanding KeyInvest (ABN 74 087 649 474 AFSL No. 240667) has of the relevant Australian legislation as at the date shown in this publication.
The information contained in this publication is of a general nature only and is intended for use by financial advisers and other licensed professionals only. It must not be handed to clients for their keeping nor can any copies of sections of this publication be given to clients. KeyInvest is not a registered tax agent under the Tax Agent Services Act 2009. We recommend that your client be referred to their registered tax agent or legal adviser prior to implementing any recommendations that you may make based on the information contained in this publication.