Fees

> Fees and other costs

> Additional explanation of fees and costs

> Example of annual fees and costs

Did You Know?

Small differences in both investment performance and fees and costs can have a substantial impact on your long term returns.

For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30 year period (for example, reduce it from $100,000 to $80,000).

You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs.

To Find Out More

If you would like to find out more or want assistance in making smart choices about your personal finances including superannuation, the ASIC website has heaps of calculators and tools that allow you to discover ways to boost your retirement income.

The Industry SuperFunds (ISF) website also has a calculator to help you check out different fee options.

Fees and other costs

This document shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the fund assets as a whole.

Taxes and insurance costs are set out in another part of this document.

You should read all the information about fees and costs because it is important to understand their impact on your investment. The fees and costs for your investment are set out below.

 

Type of fee or cost	Amount	How and when paid
Fees when your money moves in or out of the fund
Establishment fee: The fee to open your investment	NIL	Not Applicable
Contribution fee: Fee on each amount contributed to your investment, either by you or your employer	NIL	Not Applicable
Withdrawal fee: The fee on each amount you take out of your investment	$50.00	Deducted from your member account when a benefit is paid
Termination fee: the fee when you close your account with the fund	NIL	Not Applicable
Management costs
The fees and costs for managing your investment	$91.00 p.a ($1.75 per week) PLUS	Weekly and allocated to the Fund's Administration Reserve Account.
The amount you pay for your investment	0.65% p.a. PLUS	This is the ongoing investment management cost which is deducted from investment earnings before determining the rate of earnings allocated to your account.
Operational asset cost	0.16% p.a.	The costs for administration, operational and compliance costs of the Fund which is deducted from investment earnings before determining the rate of earnings allocated to your account.
Service fees^:
Investment swiching fee: The fee for changing your investment options	NIL	Not Applicable

 

^ Please see Additional Explanation of Fees and Costs section for other fees that may be applicable.

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Additional explanation of fees and costs

General Information about Fees and Costs

The rules of the Fund provide the Trustee may deduct from the Fund the amount of any fees or expenses reasonably incurred by the Trustee or its delegates in relation to the Fund.

Management Costs

The Management Costs include three components:

Administration fee
The cost of the day-to-day operation of the Fund is funded by a weekly administration fee deducted from each member’s account. These deductions are credited to the Reserve Account of the Fund and then used to pay for administration, legal, audit, investment consulting and other professional services provided to the Fund. Any surplus monies in the Reserve Account may be used to top up the earnings allocated to members’ accounts from time to time. The total administration fee from members is $1.75 per week.

The Investment Manager Fee
The Investment Manager Fee is the fee for managing the Fund’s investments. This fee may change in future periods as changes occur in the Fund’s appointed investment managers currently the Investment Manager Fee is 0.65% pa.

Performance Based Fees
The Investment Management Fee component (ie the 0.65%) of the Management Costs of AUST(Q) include performance based fees. Performance fees are paid to relevant Fund Managers when they achieve investment returns which outperform agreed benchmarks.

AUST(Q) has reasonable basis to conclude the performance based fees for the 2010/2011 year of income are likely to be between 0% to 0.20% (estimate only).

Tax

For information about taxation please refer to page 21 of the Product Disclosure Statement.

Insurance Fees

Insurance Premiums: This is the cost of insurance cover in the Fund. The premium deducted depends on the level of insurance cover you select and is deducted directly from your member
account monthly. The cost of:

The Default Death cover is $3.98 per week.

Income Protection cover is 12.5% of the Superannuation Guarantee. Further information on page 14 Product Disclosure Statement.

Incidental Fees

Family Law Fees

Family Law Act information request: This fee is charged when an eligible person (as defined in the legislation) requests information under the Family Law Act. The Trustee charges a fee of $79.00 (inc GST) to the person requesting the information and is paid by cheque made payable to AUST(Q).

Family Law Act splitting account fee: This fee is charged to effect a Family Law splitting order or agreement. The Trustee charges a fee of $55.35 (ex GST). This fee is split equally between the two parties involved, unless the whole account balance is being transferred to the non-member spouse.

Location Fee

Location fee: The Trustee will charge you a $33.00 fee if we do not have a current address for you and are required to undertake an address search. This fee is deducted directly from you member account when a search is undertaken and so it is imperative that you keep your personal information up to date.

Fee increases and new fees

The Trustee has the power to increase or introduce new fees at its discretion. Any fee increase or new fee will be advised to you at least 30 days prior to the increase being implemented.

Protection of small accounts

Please see page 19 of the Product Disclosure Statement.

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Example of annual fees and costs for AUST(Q)

This table gives an example of how the fees and costs in AUST(Q) can affect your superannuation investment over a 1 year period. You should use this table to compare AUST(Q) with other superannuation products.

 

Example – AUST(Q) Balanced
Investment		Balance of $50,000 with total contributions of $5,000 during the year
Contribution fees	Nil	For every additional $5,000 you put in, you will be charged $0
PLUS Management Costs#	0.81% plus $91.00 per annum ($1.75 per week administration fees)	And for every $50,000 you have in the fund you will be charged $405.00 (This is an indirect cost to you as these fees are deducted from the gross investment earnings of the fund) plus $91.00 per annum in administration fees.
EQUALS Costs of fund		If you put in $5,000 during a year and your balance was $50,000, then for that year you will be charged fees of $496.00*.
* Please read Page 8 of the AUST(Q) Product Disclosure Statement for detailed information about the fees and charges applicable to your AUST(Q)membership account. Additional fees may apply. # 0.81% represents the Management Costs at 30 June 2010. This percentage includes the Investment Management Fee on Page 8 and is subject to change in the future as a result of changes to the investment allocation and investment managers that AUST(Q) use to manage the investment performance of the Fund.

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