Commissions on Superannuation, Pensions and Managed Investments

money invested is generally charged a contribution or entry fee by the investment managers of the fund. This charge can range up to 5% (sometimes more, particularly for structured products) and are paid to the financial advisor who originally set up your account or policy (Even if you did not see an adviser directly, these fees are still charged and the trailing commissions are retained by the investment managers). These fees are generally automatically built into the product and you are charged regardless of how the account was set up or who it was set up by. The result of this process is that the more you invest, both by way of lump sum or smaller regular amounts (like employer SG contributions to your super account), the more you are charged. Added up over a lifetime of investing, and these fees add up to a considerable sum of money.

Trailing commissions are also built into the ongoing fees charged to your super, pension or investment and are based on a percentage of the value of your investment, rather than the amount that is invested. They are also paid to the financial advisor who originally set up your account or policy. You are charged them regardless of investment return or if you receive any additional ongoing advice relating to the investment.

The amount of trailing commissions charged to your super or investment is usually between 0.4% & 1.0% of your super, pension or investment account balance. Consider a 1% pa trailing fee on a $100,000 super or investment is $1,000 per annum or $83 per month. As they are a percentage based fee, the more money you have invested, the more you will be charged.

Super Refunds provides you with the opportunity to “reclaim your fees” and actually bank these fees and commissions into your own account. You will be charged these fees, it’s just a question of who ends up pocketing them!

New Superannuation, Pension or Managed Investments

All new investment are also automatically enrolled in our commission refund service so any commissions and adviser fees are included in the amount refunded to you.

In order to include any additional investments in the Super Refunds service, simply complete the relevant application paperwork (which will generally be provided along with the relevant Product Disclosure Statement) and return directly to us, and we will lodge it directly with the providers on your behalf and include this investment in our commission refund service.