Super fund abolishes admin fees for low balance accounts

Prime Super will abolish administration fees for superannuation accounts with balances under $6,000 from the start of next month, after assessing the impact the Protecting Your Super reforms would have on its membership.

“There has been speculation that the Protecting Your Super reforms will force fees up as super funds are required to transfer large numbers of inactive account balances to the ATO,” Prime Super chief executive, Lachlan Baird, said when announcing the change.

“Prime Super is in a position that allows a fee reduction for members with low balances. This change to the fee structure will deliver a very positive outcome to those with an account balance of $6,000 or less and the fee structure for all other members will remain unchanged.”

The major fee change the Protecting Your Super regime would see was the banning of all exit fees, including part withdrawals. Prime Super said that they had not charged these fees since 1 July, 2013.