Smaller super funds have nearly 45 percent more low balance accounts as a proportion of total membership than the average fund leaving them most exposed to the Federal Government’s cap on fees for low balance accounts.
This is the latest data from superannuation research house SuperRatings who have assessed the impact to super funds from the Federal Government’s proposed 3 percent cap on fees for super accounts with balances lower than $6,000.
The SuperRatings analysis reveals that smaller funds (defined as funds with less than $2 billion of net assets) have around 38 percent of total accounts with a balance lower than $6,000. This is compared to 26 percent for all funds and 22.5 percent for large funds.
Small funds have the highest proportion of low balance accounts
Small funds are defined as funds with net assets of less than $2 billion, medium funds with between $2 billion and $10 billion, and large funds with more than $10 billion.
The prevalence of low balance accounts within smaller super funds is even greater below the $4,000 threshold. Nearly 34 percent of all accounts held with smaller funds have balances below $4,000 compared to 22 percent for the median and 19 percent for the largest funds.