Understanding Super Fees: What You’re Actually Paying For

Almost every super account charges fees, but the way they are structured and disclosed can make it genuinely difficult to know what you are paying and why. Here is a plain breakdown.

Administration Fees

This is generally a flat dollar amount, a percentage of your balance, or a combination of both, charged to cover the basic running costs of your account: record keeping, statements, and general fund administration. It is charged regardless of how your money is invested.

Investment Fees

This covers the cost of actually managing and investing your money, including fund manager fees and other costs associated with generating investment returns. Investment fees are usually charged as a percentage of your balance and can vary significantly depending on the investment option you are in, with more actively managed or specialised options generally costing more than simple index style options.

Indirect Costs

Some funds also disclose indirect costs: expenses incurred within the underlying investments themselves that are not charged directly to your account but still reduce your overall return. These are generally included in a fund’s total fee figure but are worth understanding exist separately from admin and investment fees.

Insurance Premiums

Many super accounts include default life or disability insurance, with premiums deducted directly from your balance. This is not technically a fee in the traditional sense, but it does reduce your account balance in the same way, and is worth reviewing to make sure the cover suits your actual needs.

Why Small Differences Matter So Much

Because fees are usually charged as a percentage of your balance and compound over decades, even a difference of less than 1% between funds can add up to tens of thousands of dollars by retirement. See this play out with your own numbers using our Fees Impact Calculator, and compare real fee figures across funds on our Compare page, sourced directly from APRA rather than marketing material.

This information is general in nature and not financial advice. See our full Disclaimer for details.