As part of our focus on delivering the best outcomes for members and to strengthen the performance of First Choice Employer Super, from 1 December 2021 to 30 June 2022, we’re temporarily reducing the dollar-based and percentage-based administration fees to zero. The administration fees disclosed in the Supplementary Product Disclosure Statement dated 27 September, 2021 will be reinstated after this
date. There is no change to investment fees.
What is the impact of these temporary fee changes?
From 1 December 2021 to 30 June 2022, we’ll:
- reduce the percentage-based administration fee from 0.30% to 0% p.a.; and
- reduce the dollar-based administration fee from $10 to $0 p.a.
During this period, employer plan discounts on the percentage-based and dollar-based administration fees won’t apply and rebates won’t be paid into member accounts. Unless otherwise notified, employer plan discounts and rebates will be reinstated from 1 July, 2022.
You can use the table below to compare FirstChoice Employer Super administration fees with other superannuation products.
Fees and costs summary
|Type of fee or cost||Amount2||How and when paid|
|Ongoing annual fees and costs1,9|
|Administration fees and costs1||
Percentage-based administration fee
FirstChoice Lifestage (MySuper product)
and Select investment options
(other than FirstRate Saver) 0.00% pa
|From 1 July 2022, the percentage-based administration fee will be reflected in the daily unit price of your plan member’s investment option and payable monthly or as incurred by the option.|
From 0.35% to 0.50% pa
The current fee for FirstRate Saver is set out at www.cfs.com.au/saverreturn
plus Dollar-based administration fee
|As we have temporarily waived the dollar-based administration fee until
30 June 2022, no amount will be deducted from your plan member’s account
during this period.
Employer plan rebate5
You may be able to
|The rebate is calculated based on the plan member’s account balance, and
paid in the form of additional units to their account each month. Employer plan rebates will not be paid between 1 December 2021 and 30 June 2022 as the administration fees and costs are waived during this period. This rebate is not
available for spouse members and retained benefit members.
|Investment fees and costs1, 6, 8||FirstChoice
Lifestage (MySuper product)
0.44% to 0.46% pa (estimated)
The investment fees and costs are reflected in the daily unit price and payable monthly or as incurred by the investment option. Performance fees may also be payable on some options. See the table below for details of options with performance fees.
Select investment options (other than FirstRate Saver)
0.12% pa to 2.15% pa (estimated)
FirstRate Saver 0.00% pa
The amount paid for specific options is shown below.
|Transaction costs1, 6||0% to 0.68% pa (estimated) depending on the option. Refer to pages 18 to
19 of the PDS for the transaction costs that may apply to each option.
|These costs are deducted from the underlying assets of the option and
are reflected in the daily unit price for that option. Depending on the cost,
they may be deducted daily, monthly or at some other time.
|Member activity related fees and costs|
|Buy/sell spread||0% to 0.50% of the transaction, depending on the option. Refer to the table below for the buy/sell spreads that apply to each option. These spreads may change without notice to you to reflect changing market conditions. Please refer to the ‘Product Update’ section of our website at: www.cfs.com.au/product-updates for any changes to buy/sell spreads||This fee is payable each time your plan member adds to, withdraws from
or switches to/from an option.
|Other fees and costs7||
For details of insurance costs, to the insurance booklet. The cost includes the premium and an insurance administration fee of up to 10% (including the net effect of GST and any
|Deducted directly from your plan member’s account in advance at the beginning of each month. You may be able to negotiate a lower insurance administration fee if your plan member has employer selected insurance default cover. Please refer to ‘Negotiation of fees’ on in the PDS for further details.|
Adviser service fees
As agreed between your plan
|A fee for advice and advice services negotiated between your plan member
and their adviser and deducted directly from their account. Ongoing fixed term
adviser service fees are deducted from your plan member’s account at the
beginning of each month. One-off adviser service fees may be deducted at any
time. These fees are optional and can only be deducted for advice relating to
your plan member’s investment in the fund.
1 If your plan member’s account balance for a product offered by the superannuation entity is less than $6,000 at the end of the entity’s income year, certain fees and costs charged to your plan member in relation to administration and investment are capped at 3% of the account balance. Any amount charged in excess of that cap must be refunded.
2 All figures disclosed include the net effect of GST and any related GST credits, except for the employer plan rebate, which is exclusive of GST.
3 Even though switching fees and exit fees are not charged, buy/sell spreads apply to most options (refer to page 17 for further details).
4 This dollar-based administration fee is sometimes referred to as a ‘monthly administration fee’, ‘investor fee’ or ‘member fee’.
5 The trustee may also apply the employer plan rebate in other circumstances at its discretion.
6 Past costs are not a reliable indicator of future costs. Future costs may differ.
7 For further details about the various other fees and costs that may apply, including Insurance fees and Adviser Service Fees, please refer to the ‘Additional explanation of fees and costs’ section below.
8 Investment fees and costs includes an amount for performance fees as set out in pages 12 to 13. The calculation basis for this amount is set out under ‘Additional explanation of fees and costs’.
9 The fees and costs are estimates based on the costs incurred in the previous financial year.
FirstChoice Employer Super fees and costs from 1 December 2021 to 30 June 2022
This document illustrates FirstChoice Employer Super fees and costs from 1 December 2021 to 30 June 2022.
Colonial First State (CFS) is Superannuation and Investments HoldCo Pty Limited ABN 64 644 660 882 and its subsidiaries which includes Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL) Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL). CFS is majority owned by an affiliate of Kohlberg Kravis Roberts & Co. L.P. (KKR), with the Commonwealth Bank of Australia ABN 48 123 123 124 AFS Licence 234945 (CBA) holding a significant minority interest. CFSIL is the issuer of super, pension and investment products. AIL is the trustee of a number of superannuation funds, is an operator of investor directed portfolio services (IDPS) and provides administration, custody and reporting for superannuation products, investments, managed accounts and portfolio services. This document may include general advice but does not take into account your individual objectives, financial situation or needs. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully and assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. The PDS and FSG can be obtained from www.cfs.com.au or by calling us on 13 13 36. You should read the relevant Product Disclosure Statement (PDS), Financial Services Guide (FSG) or Investor Directed Portfolio Service Guide (IDPS Guide) before making any recommendations. Investors should read the relevant PDS, FSG or IDPS Guide before making an investment decision and consider talking to a financial adviser. Investors can obtain FirstWrap PDSs, FSGs and IDPS Guides from their adviser or firstwrap.com.au