Legislation passed in the Senate last week to reduce fees for low-balance superannuation funds and consolidate inactive, low-balance accounts has taken a further bite out of the earnings of Australia's biggest wealth manager AMP.
Should the bill be approved by the House of Representatives, AMP said it would have to hand over about 370,000 low-balance super accounts to the Australian Tax Office.
The move would result in about $10 million of lost earnings to AMP's wealth management business in the 2019 financial year, rising to an annual cost of up to $30 million a year from 2020, the company said.
"These estimates are prior to a number of potential mitigants, including offsetting actions to retain customers and revenue, administrative cost efficiencies and the consolidation of low-balance super accounts from other industry participants into AMP active accounts," it said.
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