30 January 2025
AustralianSuper invested significantly to improve services for members in FY24, adding team members to resolve member issues, hiring for international investment roles, and reducing costs in other areas.
Superannuation expenditure data released today by the Australian Prudential Regulation Authority shows AustralianSuper increased administration spending by 15 per cent in FY24 ($539,391,840) from FY23 ($470,052,052).
During the financial year the Fund saw a 6.25 per cent growth in membership to more than 3.4 million members, and a 14 per cent increase in members’ assets under management to $341 billion at 30 June 2024.
The increase in spending included new hires to improve member services and strengthening the Fund’s operations. AustralianSuper’s admin fees in FY24 remained among the lowest in the sector.1
The Fund maintained a total administration expense ratio – which calculates administration expenses as a proportion of members’ assets under management – of 0.17 per cent, consistent with FY23.
‘Everything we do is about putting members first. They have our commitment that every dollar we spend is in their best interest and this data shows we are living up to this, while keeping member fees low1,’ AustralianSuper Chief Operating Officer Peter Curtis said.
‘We have employed 75 people to open our Bereavement Centre, a specialist team to support beneficiaries at a difficult time, which handles all death claims through dedicated case managers from beginning to end.
‘We have also brought our complaints handling teams in-house so we resolve issues for members, with the build-out continuing in FY25. We have added people to the dispute resolution team, and to handle insurance claims.
‘We have reduced our FY24 spending in areas such as marketing by 12 per cent ($7.3 million) and reduced specific payroll and administration costs by $7.5 million.
‘Overall, our payments to outsourced service providers, including some marketing providers, have reduced by $15.6 million.’
Bringing the Bereavement Centre in house and internalising the complaints process contributed to an increase in expenses.
AustralianSuper also recruited for its office in London and invested in expanding its operations in New York.
Mr Curtis said growing the Fund’s presence in the world’s biggest markets allowed members to get better access to investment opportunities they cannot get in Australia.
‘We have listened to members, we are working hard on improving our service to ensure it meets the standard they expect and deserve, and spending in areas that serve members best,’ he said.
‘Our total administration expense ratio remains consistent with FY23 (0.17 per cent)2 while we improve our investment capabilities and services to members in order to deliver returns.’
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Notes
1Source: Zenith CW Pty Ltd (Chant West) (ABN 20 639 121 403). Chant West Super Fund Fee Survey June 2024. Survey compares administration fees and costs for MySuper products for a $50,000 balance. Other fees and costs apply. Fees may change in the future which may affect the outcome of this comparison.
2Administration expense ratio represents administration expenses as a proportion of members’ assets under management.
About AustralianSuper
AustralianSuper manages more than $365 billion in members’ retirement savings on behalf of more than 3.5 million members from more than 472,000 businesses (as at 31 December 2024).
This media release may include general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision consider if the information is right for you and read the relevant Product Disclosure Statement, available at australiansuper.com/pds. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/tmd.
AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.