administration fees and costs are changing
Administration fees and costs
All super funds charge administration fees and costs – it’s how we cover the cost of operating the fund and managing your account. Our administration fee also covers the cost of speaking to a super specialist to receive advice on a range of topics about your HESTA account, plus the many other services and tools we offer our members.
Despite increases in the costs to run the fund, the fees we charge have not changed in nearly ten years. To respond to increasing operational costs, the administration fees and costs we charge will be changing next year (from 1 February 2023).
For some members this means that administration fees and costs will increase. However, for some members our administration fees and costs will decrease.
what these changes mean for you
The table below shows the current administration fees and costs compared to the new administration fees and costs from 1 February 2023^.
| Current administration fees and costs | New administration fees and costs from 1 February 2023 | |
| Weekly fee | $1.25 per week | $1.00 per week |
| Percentage based fee | 0.08% (Balanced Growth) OR 0.10% (all other investment options) |
0.15% (for all investment options) |
| Percentage based fee capped at balance of | $350,000 | $500,000 |
^This comparison only looks at administration fees and costs deducted from your account. It does not take into consideration the additional administration fees and costs that may be paid from fund assets (i.e. the Fund Development Reserve).
The amount you pay in administration fees and costs will change and what this means for you will depend on your account balance and current investment option(s).
Here’s how the administration fees and costs change will affect a range of account balances:
| Account balance | Approximate fee change* ($/year) |
|---|---|
| $10,000 | Fee decrease of between $6 and $8 |
| $15,000 | Fee decrease of between $3 and $6 |
| $50,000 | Fee increase of between $12 and $22 |
| $100,000 | Fee increase of between $37 and $57 |
| $250,000 | Fee increase of between $112 and $162 |
*The examples above are illustrative only as they assume a static account balance throughout the year and does not include any movements to the account throughout the year. You can read the significant event notice to find out more information about how the fee changes affect your account.
Over $500,000 in your account?
Administration fees and costs will be applied to account balances up to $500,000. This means, if you have more than $500,000 in your account, the remaining balance over $500,000 will not have administration fees and costs applied to it from 1 February 2023.
Lower balances are protected
If your account balance for a product offered by HESTA is less than $6,000 at the end of the HESTA income year, certain fees and costs charged to you in relation to administration and investment are capped at 3% of the account balance. Any amount charged in excess of that cap must be refunded.
Over age 60?
If you’re thinking about working less or maybe even retiring – you might be thinking about starting a HESTA Income Stream. You’ll be pleased to hear that the administration fees and costs on these accounts will be reducing from 1 February 2023.
Good news! The administration fees and costs on your income stream account are decreasing from 1 February 2023. We’re also introducing a cap on our administration fees and costs so you won’t pay fees on the part of your balance over $600,000 from 1 February 2023. Note the balance cap cannot be spread across multiple accounts.
The table below shows the current administration fees and costs compared to the new administration fees and costs from 1 February 2023^.
| Current administration fees and costs | New administration fees and costs from 1 February 2023 | |
|---|---|---|
| Weekly fee | $1.75 per week | $1.50 per week |
| Percentage based fee | 0.28% (balances up to $250,000) OR 0.23% (balances of $250,000 and over) |
0.23% Same percentage-based fees and costs apply regardless of balance |
| Percentage based fee capped at balance of | No cap | $600,000 |
^This comparison only looks at administration fees and costs deducted from your account. It does not take into consideration the additional administration fees and costs that may be paid from fund assets (i.e. the Fund Development Reserve).
For an income stream account with $250,000, the administration fee saving will be about $138 per year*. Overall, no matter your income stream account balance, you’ll pay less in administration fees and costs.
Here’s how the administration fees and costs decrease will affect a range of account balances:
| Account balance | Approximate fee DECREASE* ($/year) |
|---|---|
| $50,000 | $38 |
| $100,000 | $63 |
| $250,000 | $138 |
| $500,000 | $13 |
*The examples above are illustrative only as they assume a static account balance throughout the year and does not include any drawdowns or movements to the account throughout the year. You can read the significant event notice to find out more information about how the fee changes affect your account.
The administration fees and costs you pay on your income stream account will decrease. The administration fees and costs you pay on your super account will change and what this means for you will depend on your account balance and current investment option(s).
We’ll also be introducing a cap on our administration fees and costs on your income stream account - so you won’t pay fees on balances over $600,000 from 1 February 2023.
See the income stream fee decrease table >
See the super fee change table >
Income stream fee decrease
The table below shows the current administration fees and costs compared to the new administration fees and costs from 1 February 2023^.
| Current administration fees and costs | New administration fees and costs from 1 February 2023 | |
|---|---|---|
| Weekly fee | $1.75 per week | $1.50 per week |
| Percentage based fee | 0.28% (balances up to $250,000) OR 0.23% (balances of $250,000 and over) |
0.23% Same percentage-based fees and costs apply regardless of balance |
| Percentage based fee capped at balance of | No cap | $600,000 |
^This comparison only looks at administration fees and costs deducted from your account. It does not take into consideration the additional administration fees and costs that may be paid from fund assets (i.e. the Fund Development Reserve).
For an income stream account with $250,000, the administration fee saving will be about $138 per year*. Overall, no matter your income stream account balance, you’ll pay less in administration fees and costs.
Here’s how the administration fees and costs decrease will affect a range of account balances:
| Account balance | Approximate fee DECREASE* ($/year) |
|---|---|
| $50,000 | $38 |
| $100,000 | $63 |
| $250,000 | $138 |
| $500,000 | $13 |
*The examples above are illustrative only as they assume a static account balance throughout the year and does not include any drawdowns or movements to the account throughout the year. You can read the significant event notice to find out more information about how the fee changes affect your account.
Super fee change
The table below shows the current administration fees and costs compared to the new administration fees and costs from 1 February 2023^.
^This comparison only looks at administration fees and costs deducted from your account. It does not take into consideration the additional administration fees and costs that may be paid from fund assets (i.e. the Fund Development Reserve).
The amount you pay in administration fees and costs will change and what this means for you will depend on your account balance and current investment option(s).
Here’s how the administration fees and costs change will affect a range of account balances:
| Account balance | Approximate fee change* ($/year) |
|---|---|
| $10,000 | Fee decrease of between $6 and $8 |
| $15,000 | Fee decrease of between $3 and $6 |
| $50,000 | Fee increase of between $12 and $22 |
| $100,000 | Fee increase of between $37 and $57 |
| $250,000 | Fee increase of between $112 and $162 |
*The examples above are illustrative only as they assume a static account balance throughout the year and does not include any movements to the account throughout the year. You can read the significant event notice to find out more information about how the fee changes affect your account.
got a question?
For detailed information about these changes, you can read our significant event notice.
The administration fees and costs we charge will change on 1 February 2023. For some members this means your administration fees and costs will decrease and for others they will increase. To find out how these changes affect you, read the significant event notice.
The administration fees and costs change will take effect from 1 February 2023.
The amount you pay in administration fees and costs will change, depending on your account type and balance. For more detailed information on what these changes mean for your account, read the significant event notice.
HESTA is run solely to benefit our members – meaning the fees we charge cover our operating expenses. While we’ve been experiencing increases in operating costs for many years, we remain committed to continuing to provide you with the best in member services and online tools.
You’ve made a great choice with HESTA. We’re one of the best value for money super funds – and this was recognised in our recent SuperRatings^ Net Benefit Award win.
This Award recognises HESTA as the super fund with the best net benefit outcomes delivered to members. The net benefit is your investment earnings, after any taxes, fees and costs have been taken out.
We’re also proud of our long-term investment performance, having been awarded SuperRatings’ 15 year Platinum Performance rating.
Beyond the external recognition, we provide:
- a cutting edge online portal to help you manage your super
- help and superannuation advice included as part of your membership
- access to a great range of investment options to support your financial goals managed responsibly by our expert investment team.
Having insurance in your super does mean you pay insurance fees. However, many people find insurance through their super a cost effective way to ensure they’re covered if the worst happens. Plus – with the fees coming out of your super – it’s money you don’t miss from your bank account. Insurance is most relevant for people who are still working and for those with dependants. Insurance from another super fund may be able to be transferred to HESTA.
There are a number of options. For example, you could consider another investment option, or you could make an additional contribution, or your spouse could make a contribution on your behalf. If you’d like to make a plan to boost your super, you might benefit from talking to one of our advisers.
For income stream members
Administration fees and costs are decreasing for members with an income stream. Read the significant event notice to find out how much these fees are reducing.
Withdrawing more from your retirement income stream is always an option. Taking money out of your account would save on super-related fees, but means you’ll also have less money invested. If you think you could benefit from a chat about your income stream, visit our Retirement Hub.
^Visit SuperRatings for important information about this rating. Product ratings are only one factor to be considered when making a decision.
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