Fee ranking formula
9AB.24 Fee ranking formula
For the purposes of paragraphs 9AB.21(2)(b) and 9AB.22(2)(b), the formula is:
where:
applicable administration fee has the meaning given by subregulation (2).
applicable cost amount means:
where it is possible to identify the Part 6A product’s applicable transaction costs in relation to the relevant year from information available to APRA—means the applicable transaction costs; or
otherwise—means the applicable indirect cost ratio.
applicable indirect cost ratio means the product of the following:
the relevant beneficiary’s account balance in respect of the Part 6A product;
the Part 6A product’s indirect cost ratio in relation to the relevant year.
applicable investment fee has the meaning given by subregulation (3).
applicable transaction costs has the meaning given by subregulation (4).
For the purposes of subregulation (1), work out the applicable administration fee as follows:
first, work out the product of the following:
an account balance in respect of the Part 6A product;
the Part 6A product’s administration fee percentage in relation to the relevant year;
work out the sum of the following:
the result of paragraph (a);
the Part 6A product’s administration fee flat amount in relation to the relevant year;
if the Part 6A product does not have an administration fee cap in relation to the relevant year, the applicable administration fee is the result of paragraph (b);
if the Part 6A product has an administration fee cap in relation to the relevant year, the applicable administration fee is the lesser of the following:
the result of paragraph (b);
that administration fee cap.
For the purposes of subregulation (1), work out the applicable investment fee as follows:
first, work out the product of the following:
an account balance in respect of the Part 6A product;
the Part 6A product’s investment fee percentage in relation to the relevant year;
work out the sum of the following:
the result of paragraph (a);
the Part 6A product’s investment fee flat amount in relation to the relevant year;
if the Part 6A product does not have an investment fee cap in relation to the relevant year, the applicable investment fee is the result of paragraph (b);
if the Part 6A product has an investment fee cap in relation to the relevant year, the applicable investment fee is the lesser of the following:
the result of paragraph (b);
that investment fee cap.
For the purposes of subregulation (1), work out the applicable transaction costs as follows:
first, work out the product of the following:
an account balance in respect of the Part 6A product;
the Part 6A product’s transaction costs percentage in relation to the relevant year;
work out the sum of the following:
the result of paragraph (a);
the Part 6A product’s transaction costs flat amount in relation to the relevant year;
if the Part 6A product does not have a transaction costs cap in relation to the relevant year, the applicable transaction costs is the result of paragraph (b);
if the Part 6A product has a transaction costs cap in relation to the relevant year, the applicable transaction costs is the lesser of the following:
the result of paragraph (b);
that transaction costs cap.
This Act’s bill:Explanatory statement
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