The Joint Accounting Bodies, comprising Chartered Accountants ANZ, CPA Australia, and the Institute of Public Accountants (IPA), have expressed support for maintaining levies on small APRA funds and Single Member Approved Deposit Funds at $590 per fund. However, they highlighted significant disparities between the expenses incurred by larger versus smaller funds.
Under the proposed tiered structure, a large fund managing $360 billion in assets across 3.42 million member accounts would see their APRA levy reduced to $10.3 million, or $3.01 per member account annually in 2025–26, down from $3.71 the previous year. In contrast, a smaller fund with $349 million in assets and 2,239 member accounts would incur a charge of $15.26 per member account annually, against a previous $17.17, amounting to over three times the charge of the larger funds. While this reduction is 11.1%, it is still less favorable compared to the larger funds’ 18.9% decrease.
The report also acknowledges recent changes, such as the increase in the upper threshold on the restricted component to $950,000, which offers some relief from what has been perceived as a disadvantage to smaller funds.
This discrepancy in levies is significant for the Australian superannuation landscape as smaller funds already face substantial administrative costs. The proposed levy structure could further strain these smaller funds, transferring more financial burden onto their members. The current government policy encourages mergers within the superannuation industry to reduce fees; yet, these changes could disproportionately impact smaller funds, potentially limiting member choice and market competition.
The Joint Accounting Bodies are advocating for a more equitable levy structure that does not exacerbate the financial stress for smaller funds. As these policies take shape, the focus will be on balancing cost reductions with fair practices across the board for all super fund members. Stakeholders will be closely monitoring any legislative or policy adjustments that aim to address these disparities, ensuring a more level playing field within the sector. The ongoing dialogue between the accounting bodies and the Treasury will be crucial in shaping future modifications to levy structures.
