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Changes to the way we disclose our fees and costs

The Australian Securities and Investment Commission (ASIC) has introduced new regulations (Regulatory Guide 97) on how all super funds disclose fees and costs in their Product Disclosure Statements, annual statements and exit statements.

These new guidelines will help ensure that all super funds describe their fees and costs in the same way so members can more easily compare funds.

In line with these new guidelines, we’ve updated our Product Disclosure Statements and other material from 30 September 2022. 

What’s changing?

Some of the types of fees and costs shown in the PDS have changed. You are not paying any additional fees or costs and there is no impact to the performance of your investments.

For more detail on each of the below fee and cost types please refer to the Additional Information on Fees and Costs document available here.

Summary of changes to fees and cost types

Before 30 September 2022 From 30 September 2022
Administration fees

Now known as Administration fees and costs, and is made up of:
Administration fees: There is no change to the administration fee you are charged; and
Administration costs: This is a new cost type which is deducted from the Fund’s administration reserve and not from your account. Known as “Costs met from administration reserves”. See “What are ‘costs met from administration reserves’ “ below for more information. Administration costs are an estimate for the financial year ended 30 June 2022.
Investment Fees Now known as Investment fees and costs: As well as including Investment fees, this now also includes some of the indirect costs previously captured in the Indirect Cost Ratio. Investment fees and costs are an estimate for the financial year ended 30 June 2022.
Performance fees: were an estimate of the previous financial year only. Performance fees: You are not paying any more performance fees. Performance fees are now an estimate of the average for the previous 5 years’ performance fees (where applicable). This change has been made to give you a more realistic view of the performance fees you can expect to pay as the 5 year average smooths out some of the large changes that can occur between years for performance fees.

Transaction costs: didn’t exist as a cost type on its own prior to 30 September 2022.

 Transaction costs: This is a new cost type that includes such things as brokerage and stamp duty that were previously in the Indirect Cost Ratio. Transaction costs are an estimate for the financial year ended 30 June 2022.
Indirect Cost Ratio No longer exists as a cost type. These cost are now found in either Investment fees and costs or Transaction costs.
Buy-sell spread No change
Switching Fees No change
Insurance Fees No change
Advice Fees No change

Will I pay more?

No. The actual fees and costs you are charged are not changing. The only change is to how we describe the fees and costs you are being charged. You are not paying any more fees and costs and there is no impact to the performance of your investments.

What does the “Cost of Product’ table tell me?

This is a new table that shows each investment option and the total ongoing annual fees and costs you would pay if you had $50,000 invested in that option for the entire year.

You should use this figure to help compare superannuation products and investment options.

Additional fees such as a buy–sell spread may apply. Refer to the Fees and costs summary table in the PDS available here (link to rest.com.au/pds) for the relevant superannuation product.

What are ‘costs met from administration reserves’?

‘Costs met from administration reserves’ are not deducted from your account, they are deducted from the Fund’s administration reserve throughout the year.

This is a new cost that type that shows what costs a fund pays for out of its administration reserve and it’s part of administration fees and costs.

The administration reserve is a pool of money that a fund holds to manage administration expenses. Administration fees go into this pool, and administration expenses come out of the pool. Over the financial year, if administration costs paid from the administration reserve exceed the administration fees credited to the administration reserve, the difference is known as ‘costs met from administration reserves.’

The amount of 0.01% pa disclosed in the 30 September 2022 PDS is an estimate based on the total of costs met from the administration reserve divided by the total assets of the Fund for the financial year ended 30 June 2022. 

Where can I find out more about these changes?

If you’re a Rest Super or Rest Corporate member, you can find more information in your Product Disclosure Statement and the Additional Information on Fees and Costs document available here.

If you’re in Rest Pension, you’ll find this information in the Rest Pension PDS available here.

You can also find out more about these new regulations on the ASIC website just search for ‘RG97’.

Or chat with a Rest Customer Service Consultant on LiveChat