Superannuation funds paid almost $1.7 billion for financial advice in FY24, 89 per cent of which ($1.52 billion) went to external financial advisers, the latest figures from APRA show.
APRA’s Superannuation Fund Expenditure data shows super funds with a 2024 balance date spent $82.7 million on intrafund advice and $99 million on internal planners, for a total of just over $160 million combined out of the $1.7 billion overall.
Data from FY23 showed $1.38 billion in advice fees were charged, comprising of $1.19 billion paid to external financial planners, with $73 million for intrafund advice and $43.5 million for internal financial planners of super funds.
The country’s second and third largest industry funds outspent the largest on advice.
The $268 billion Australian Retirement Trust, the country’s second largest fund, spent $57.1 million on advice, with $25.25 million on intrafund and $31.85 million on external advisers (ART has no internal holistic adviser channel).
The $162 billion Aware Super, the third largest super fund formed from the mergers of First State Super (NSW), VicSuper and WA Super, spent $46.6 million on advice including $37.69 million on internal advisers, just over $7 million on intrafund and $1.84 million on external advisers.
The $308 billion Australian Super spent $37.61 million on advice, including $4.42 million on intrafund, $10.48 million on internal advisers, and $22.7 million on external advisers.
Top industry funds internal advice expenditure
| AUM | Total (inc external advice) | Intrafund | Internal adviser | |
| ART | $268b | $57.10m | $25.25m | n/a |
| Aware Super | $162b | $46.60m | $7.06m | $37.69m |
| AustralianSuper | $308b | $37.61m | $4.42m | $10.48m |
| UniSuper | $126.7b | $23.13m | $7.34m | $15.80m |
| Hesta | $77b | $14.55m | $13.95m | n/a |
| Telstra Super | $24b | $12.19m | n/a | $12.19m |
| Cbus | $84.5b | $10.49m | $9.84m | n/a |
| Hostplus | $100b | $6.76m | $1.50m | $5.26m |
| LGIAsuper | $30b | $6.26m | $1.20m | $3.79m |
| Rest | $77b | $5.50m | $5.50m | n/a |
| Equipsuper | $31.74b | $4.08m | n/a | $4.08m |
| Mine Super | $12.4b | $3.7m | $3.50m | n/a |
| NGS Super | $14.14b | $2.74 | $1.71m | $311,755 |
| Care Super | $21.24 | $2.12m | n/a | $2.12m |
| Maritime Super | $5.69b | $1.41m | $760,576 | $287,439 |
Source: APRA Annual fund-level superannuation fund expenditure statistics, June 2024
UniSuper spent $23.13 million on advice – $15.8 million on internal advisers and $7.34 million on intrafund – as the fund looks to open up its external advice offering this year.
The troubled Cbus – which saw a raft of negative news commence after the end of FY24 – reported only $644,000 on external advice despite its long-term referral partnership with the Financial Advice Association of Australia which dates back pre-merger to the Financial Planning Association.
Since the data was reported, Cbus has also launched a tightly scoped retirement advice offering to bridge the gap between intrafund and holistic advice.
Top industry funds external advice expenditure
| Fund size | External advice | Total | |
| ART | $268b | $31.85 million | $57.10m |
| AustralianSuper | $308b | $22.7 million | $37.61m |
| Aware Super | $162b | $1.84 million | $46.60m |
| LGIA super | $30b | $1.28 million | $6.26m |
| Spirit Super | $28.1b | $861,343 | $861,343 |
| NGS Super | $14.14b | $708,336 | $2.74 |
| Cbus | $84.5b | $644,019 | $10.49m |
| Hesta | $77b | $598,543 | $14.55m |
| TWU Super | $6.6b | $566,197 | $773,632 |
Source: APRA Annual fund-level superannuation fund expenditure statistics, June 2024
The APRA data reported $480 million spent by funds on marketing in FY24. Of the top 10 funds by marketing expenditure, only AustralianSuper spent less in FY24 than in FY23.
Fund marketing expenses
| Fund Size | FY23 | FY24 | Difference | |
| AustralianSuper | $308b | $60.2m | $52.9m | $-7.3m |
| ART | $268b | $41.81m | $49.07m | $7.26m |
| Aware Super | $162b | $33m | $44.57m | $11.57m |
| UniSuper | $126.7b | $24.69m | $38.77m | $14.08m |
| Hesta | $77b | $34.15m | $37.02m | $2.87m |
| Hostplus | $100b | $29.52m | $36.03m | $6.51m |
| Cbus | $84.5b | $33.13m | $36m | $2.87m |
| Rest | $77b | $18.66m | $19.89m | $1.23m |
| Mercer Super | $65.24b | $10.14m | $16.66m | $6.52m |
| Spirit Super | $28.1b | $12m | $16.65m | $4.65m |
Source: APRA Annual fund-level superannuation fund expenditure statistics, June 2024
The adviser-dependent retail platforms predictably dominate external adviser costs, with AMP North ($321.55 million) leading the way, followed by CFS FirstChoice ($297 million) and Macquarie Superannuation ($240.6 million).
The payments from FirstChoice almost doubled from the previous year reaching $297 million after posting $150.35 million in FY23.
But FirstChoice also had negative internal advice expenses of $1.23 million in FY24 and $41.23 million in FY23 due to remediation payments from the Hayne royal commission fees for no service scandal.
CFS said figures relating to advice fees are not of any remediation or advice fee refunds.
“Members must consent to any advice fees they choose to deduct from their superannuation account to pay for financial advice,” CFS said in a statement to Professional Planner.
“The FY23 reported figures for advice fees paid by CFS members to their adviser are principally lower than those reported in FY24 due to payments that were made in that year relating to historical advice remediation.”
HUB24 ($225.6 million) and Netwealth ($181.9 million) round out the top five platforms.
Top retail funds
| Assets | External adviser costs | |
| Wealth Personal (AMP North) | $55b | $321.55 million |
| CFS First Choice | $88b | $297 million |
| Macquarie Superannuation | $38b | $240.6 million |
| HUB24 | $28.39b | $225.6 million |
| Netwealth | $25.73b | $181.9 million |
Source: APRA Annual fund-level superannuation fund expenditure statistics, June 2024
