99GFee cap on low balances

99G Fee cap on low balances

Application (1) This section applies if: (a) the trustee, or trustees, of a regulated superannuation fund offer a choice product or MySuper product; and (b) a member of the fund: (i) holds the product on the last day of a year of income of the fund and, on that day, has an account balance with the fund that relates to the product that is less than $6,000; or (ii) holds the product on one or more days during a year of income of the fund and, on the last of those days, has an account balance with the fund that relates to the product that is less than $6,000. Fee cap for a member who holds the product for the whole year (2) If the member holds the product for the whole year, the trustee or trustees of the fund must not charge capped fees and costs to the member in relation to the product for the year the total combined amount of which exceeds the amount worked out as follows: Start formula Fee cap percentage times Member's account balance for the product on the last day of the year end formula where:

fee cap percentage means the percentage prescribed under subsection (4).

member’s account balance for the product on the last day of the year means so much of the member’s account balance with the fund on that day as relates to the product.

Capped fees and costs (3) For the purposes of this section, the following are capped fees and costs charged to the member in relation to the product for the year: (a) administration fees charged to the member in relation to the product for the year; (b) investment fees charged to the member in relation to the product for the year; (c) an amount worked out in accordance with the regulations (if any) that: (i) is not charged to the member as a fee; and (ii) is incurred by the trustee or the trustees of the fund in relation to the year; and (iii) relates to the administration of the fund or the investment of the assets of the fund. Fee cap percentage (4) The regulations may prescribe, for the purposes of this section, a fee cap percentage of no more than 3%. Fee cap for member who holds the product for part of the year (5) If the member holds the product for only part of the year, the trustee or trustees of the fund must not charge capped fees and costs to the member in relation to the product for the year the total combined amount of which exceeds the amount worked out as follows: Start formula Fee cap for the whole year times start fraction Number of days during the year on which member held the product over 365 end fraction end formula where:

fee cap for the whole year means the total combined amount of capped fees and costs that could be charged to the member in relation to the product for the year under subsection (2), if: