The cash administration fee applicable to money held with the Australian Expatriate Superannuation Fund is set to increase from 1 May this year, while the way interest is calculated will also change.
According to a letter sent to clients and their advisers, seen by International Adviser, the cash administration, applicable to cash AUD holdings and the pound cash investment option will both rise, with AUD cash holdings increasing from 0.85% per annuam to up to 1.40%, while pound cash holdings will increase from 0.85% to 1.10%.
The cash administration fee is charged by Praemium Australia and is not a direct fee, but rather is deducted from the interest earned on cash holdings in the account.
The letter stressed that the underlying interest earned within the account “remains competitive” and the net impact on the final interest rate received is “expected to be minimal”.
The way interest is calculated is also changing from May this year.
The letter states: “From 1 May 2026, the calculation for crediting interest to your account’s cash holdings is also changing to align with Praemium’s platform standards. Historically, your interest was described as being based on the Reserve Bank of Australia cash rate, less 50 basis points. Moving forward, interest will be described as net interest crediting. This means any interest earned on your cash is credited to your account as it is received, less the cash administration fee.
“Although the fee is increasing, we anticipate the actual interest received by you will not be significantly different from historical levels for AUD cash holdings,” it added.
Praemium declined to comment. The Australian Expat Super was contacted for additional comment.
