Demystifying superannuation fees: A simple guide to help you understand fees

1 November 2023

Fees are an important consideration when deciding where you want to grow your retirement savings.

Superannuation funds charge a mixture of different fees, covering items such as administration, investments and insurance. Each has its own way of doing this, and they are all different.

When comparing superannuation funds, it is important to look at which fees are being charged, and which fees are not being charged. A fund’s administration fees may look good, but are there other fees that could cost you more in the long term?

Comparing fees from different superannuation funds is crucial for the long-term growth of your retirement savings. Understanding the different types of fees can help you make an informed decision about the superannuation fund that’s right for you.

Brighter Super’s low fees

According to research house SuperRatings, Brighter Super is one of the top five industry super funds with the lowest fees for an Accumulation account invested in a MySuper option¹.

Since the merger of three funds to create Brighter Super over the last two years, members are, on average, paying between 20% and 24% less in fees (depending on their fund of origin) for the MySuper investment option².

Savings from greater economies of scale achieved from the mergers are being used to lower our fees. You can find out more in our recent article on our low fees.

Our not-for-profit fee model 

A superannuation fund’s fees may depend on what type of fund they are. Retail, industry, public sector and corporate funds all have a different approach to fees.

Brighter Super’s fee model has been shaped from being a not-for-profit industry super fund. We don’t have any shareholders and we put our profits back into the fund for the benefit of all our members.

Being a not-for-profit fund means we only charge fees to run the fund and provide services to our members, and we work hard to keep our fees as low as possible.

Understanding our fees 

Brighter Super fees cover these four categories, which are common across superannuation funds: administration, investment, advice and insurance.

Brighter Super does not charge investment switching fees or buy-sell spread fees.

Different fee arrangements apply if you have a Defined Benefit account.

Below is a brief description of Brighter Super’s fees. Full details are provided on our fees and costs page on our website and in the Product Disclosure Statement for your account, at brightersuper.com.au/pds.

1. Administration fees and costs

Administration fees and costs cover the costs of administration needed to run your account throughout the year. This includes processing transactions, telephone support, Member Online, general advice, preparing statements, and sending communications.

Administration fees and costs include an administration fee charged as a percentage of your account balance.

Administration fees and costs vary for Brighter Super and Optimiser accounts. Full details are available in the Product Disclosure Statement for each type of account, and on our fees and costs web page.

2. Investment fees and costs

This fee covers the costs of managing how your superannuation is invested.

Fees will vary depending on how your superannuation is invested, with each investment option charging a different percentage of your account balance.

3. Transaction costs 

Transaction costs are amounts incurred in buying and selling assets (for example, brokerage and settlement costs) that are not otherwise included in the buy-sell spread of an investment option.

4. Advice fees 

This fee is only charged when you receive personal advice and a statement of advice that outlines a personal superannuation strategy tailored for you. It covers the costs of a financial adviser providing personal advice on your situation and financial goals.

Brighter Super provides members with general and single-issue personal advice over the phone, which is covered in the administration fee. 

Since the transfer of SPSL into Brighter Super on 1 June 2023, we have welcomed the relationships of more than 1,000 external advisers. Members who are getting external advice relating to super can now pay their external financial adviser’s fee from their Brighter Super or Optimiser account.

5. Insurance fees 

If you have insurance within your Brighter Super or Optimiser account, you are charged an insurance premium, which is deducted from your superannuation account monthly in arrears.

The insurance premium is deducted from your superannuation account and does not affect your sum insured. Included in the insurance premium is an insurance administration fee that is charged to cover the administration costs of managing your insurance arrangements.

Further information

More detailed information about our fees can be found on our website at:

• Fees and costs.
• The Product Disclosure Statement for your account, at brightersuper.com.au/pds.