Fees and costs

Administration fees and costs at Child Care Super are calculated as follows:

$88.40p.a. + 0.15%p.a. of your account balance per year, with the aggregate capped at $800 p.a. per account. An additional 0.02% p.a (estimated) may also be deducted from fund reserves and not directly from your account.

This fee covers the general cost of managing your account. You’ll see the $88.40 p.a come out of your account as a monthly amount. The 0.15% p.a is deducted from the investment option before the unit prices have been struck, so you won’t see this fee in your account.

If your account balance for a product is less than $6,000 at the end of the financial year (or when you close your account), certain fees and costs charged to you in relation to administration and investment are capped at 3% of the account balance for the year (or the period until your account is closed). Any amount charged in excess of that cap must be refunded.

Investment fees and costs vary depending on which investment option you are in and are deducted from investment returns before they’re applied to your account. Investment fees and costs include an amount of up to 0.04% for performance fees depending on the investment option. These fees are deducted from the investment option daily before the unit prices have been struck, so you won’t see this fee in your account.

There are transaction costs associated with the buying and selling of the Fund’s underlying investments incurred by external underlying fund managers such as brokerage, external buy/ sell spreads, settlement costs, clearing costs and stamp duty on investment transactions. Transaction costs disclosed are an estimate based on transaction costs paid in the previous financial year. These transaction costs, where relevant, are an additional cost to investors, deducted from the investment option daily before the unit prices have been struck, so you won’t see this fee in your account.

The Fund maintains a Contingency Reserve and it is managed in accordance with the Fund’s Contingency Reserving Policy. The Reserve provides a buffer against losses not covered by the Operational Risk Financial Reserve (ORFR). It is also used to provide funding for the Operational Risk Financial Reserve.

An additional fee of 0.02% p.a. (estimated) may be deducted from the Contingency Reserve to cover regulatory costs and initiatives that deliver member outcomes. This amount is not deducted directly from your account or reflected in the calculation of unit prices.

Insurance fees apply to any insurance cover provided to you. If applicable, the insurance fees you pay cover the cost of insurance (insurance premiums) and the cost of administering any insurance cover you have in the Fund (insurance administration fees). The Promoter receives an insurance administration fee of 6% of the insurance fees deducted from the accounts of insured members, in relation to the administration of the insurance cover arrangements for members. The insurance fees depend on the type and level of insurance cover, and other factors including your age and occupation. Refer to the Insurance Guide for details.