What’s new in AUSfund?
There’s been a lot going on in super this year and AUSfund is no exception with three key developments since our last newsletter.
1. ERF merger
The eligible rollover fund sector shrank from 8 funds to 7 in April with the successful transfer of Aon ERF into AUSfund. Just under 20,000 members were transferred and these former Aon ERF members are now significantly better off due to the differences in fees and performance between the two funds.
2. Cross Fund Matching
AUSfund along with participating industry funds is getting a jump start on the ATO, ahead of their October deadline, with a massive account clean-up through cross fund matching.
Twelve industry funds have now signed up to participate in one or both of two large cross fund matching exercises that will run during the remainder of the year. The first kicks off next month. We're expecting up to half a million members to be transferred into AUSfund to be washed through the program during the next 6 weeks, and a similar number in October after the new law takes effect.
We are currently in the process of working through implementation with participating funds including the member journey and associated communications. AUSfund is already seeing an upswing in enquiries as a result of participating funds communicating with their members about how the laws will affect them and to advise them of the fund’s efforts to consolidate their accounts.
3. Fee reductions
In April, AUSfund also reduced its fees to short-term members by changing the flat fee to a pro-rata fee. This means that members who claim their funds quickly after being transferred into AUSfund, or whose account is successfully cross fund matched with an active account will only be charged for the number of days they are in the fund.
All the accounts currently being onboarded for the cross fund matching exercise commencing in June will benefit from this change to fees.
Contact Kate Brown, Product Manager, AUSfund at firstname.lastname@example.org