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”.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
While some superannuation funds have gone down the route of internalisation, others say they favour ‘smart partnering’ with external managers for diversification appeal.
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