The superannuation levy will be abolished from 1 July under a new user-pays funding model from the Australian Financial Complaints Authority (AFCA).

In an update, AFCA said the proposals had been approved following extensive consultation with financial services firms.

The organisation said: “The superannuation levy has been abolished and super funds have been brought under the same fee structure as other scheme members- with a positive or neutral impact for most super fund trustees”.

In the proposals earlier this year, AFCA said removing the super levy would mean 82% of members from the superannuation sector would see reduced total annual fees, 25% would only pay the annual registration fee and 18% would see an increase due to higher relative complaint volumes.

AFCA chief executive, David Locke, said: “This is a fair, transparent and equitable funding model. Ultimately, firms have control over the fees they pay by taking a resolution mindset when managing complaints”.