Sunsuper members, who are clients of financial advisers, are able to deduct a fee from their account to pay for their super or pension related financial advice. However, advice services must meet the sole purpose test requirements of the Superannuation Industry (Supervision) Act 1993.
Get the documentation to arrange for the advice fee to be deducted here.
When deducting an advice fee from a Sunsuper member’s account, the Trustee of the Sunsuper Superannuation Fund is subject to the sole purpose test requirements contained in the Superannuation Industry Supervision Act 1993.
The Trustee of the Sunsuper Superannuation Fund considers that the advice services provided must have a direct, reasonable, and transparent connection to the purpose of retaining the member’s interest in the Sunsuper Superannuation Fund.
In exercising its responsibilities under the sole purpose test requirements, Sunsuper may apply its discretion in respect of enabling advice fees to be deducted from a member’s account.
Where advice does not wholly meet the sole purpose test
If the advice services provided do not wholly meet the sole purpose test (advice in relation to Trauma Insurance cover for example) then the invoice for the advice services must be apportioned. Sunsuper only permits advice fees to be deducted from a member’s account for the portion of the advice services that are connected to the member’s interest in the Sunsuper Superannuation Fund.
Please also note: Sunsuper does not allow payments for ongoing financial advice services from a member’s account (either monthly or annually). Sunsuper only allows payments for one-off upfront advice fees where the Financial Adviser has provided personal advice recommendations in a personal advice document (eg. SoA, RoA).
Examples of advice that can be paid from a Sunsuper account:
- Insurance within the fund
- Investment choice
- Additional contributions
- Consolidation of funds into a Sunsuper account
- Retirement planning projections
- Super beneficiaries.
Examples of advice that cannot be paid from a Sunsuper account:
- Trauma and business insurance
- Managed funds
- Negative gearing
- Credit advice
- Interests and features in any other superannuation fund other than Sunsuper
- Rolling out the full balance of a Sunsuper member’s account/s.
This is not an exhaustive list, but rather provides guidance around Sunsuper’s obligations under the sole purpose test.
How is the fee paid?
Our preferred payment method is via EFT however, it will depend on the information you provide on the invoice for the advice services.
The advice fee is deducted directly from the member’s account, not from the Fund’s reserves. The payment is not a commission paid by Sunsuper to the Financial Adviser or their AFS Licensee.
Sunsuper does not apply a tax rebate for an advice fee being deducted from a member’s account, and it does not claim a tax deduction for the Sunsuper Superannuation Fund for the payment of an advice fee. This is primarily on the basis that establishing and implementing a financial plan is not tax deductible. Whilst it is possible for ongoing financial advice fees to be tax deductible, Sunsuper does not allow payments for ongoing financial advice services from a member’s account (either monthly or annually) under the arrangement set out in this factsheet.
Is there a minimum balance the member must have in their Sunsuper account?
Yes. To charge the advice fee, the Sunsuper member must have a balance of $3,000 after the advice fee has been charged. For example, if your advice fee is $1,000 the member’s balance must be at least $4,000 for the advice fee to be approved. This is to protect the loss of any insurance cover the member may have and to keep the member’s account “active”.
Please note that payment cannot be made:
(a) if the Sunsuper member’s account balance of $3,000 is not maintained,
(b) after the Sunsuper member’s account has been closed, or
(c) prior to us receiving any rollover funds into a prospective Sunsuper member’s account.
Sunsuper member documentation can be emailed to email@example.com and we will process the advice fee. However, the originals for the following must also to be sent to us:
- ATO Release Authority (e.g. Division 293 or Excess contributions tax) – if the payment is to the member
- Change of Details form – only if certified ID is required
- Compassionate Grounds form
- Departing Australia Superannuation Payment form
- Income account Additional Withdrawal form
- Income account request form
- Retirement and Unrestricted Super form
- Transfer of Insurance Cover form
- Transfer to another super fund form
- Voluntary Contribution form - however, members can use Bpay.
Please send all original forms and documentation to:
Sunsuper, GPO BOX 2924, Brisbane QLD 4001
For further information on deducting your advice fee from a Sunsuper member’s account, please contact us on 1800 142 470.