Rice Warner is predicting Productivity Commission recommendations aimed to curb the number of individual superannuation accounts will impact super funds to the tune of $350 million.
The researcher believes the number of superannuation accounts in Australia will drop by 26% as a result of the Government's Protecting Your Super package transferring accounts with balances lower than $6000 to the ATO.
Further, Rice Warner said if the Productivity Commission's recommendations - which include the much criticised 'best-in-show' model - were to take effect, superannuation accounts could reduce in number by 32%.
The researcher said the removal of five million unnecessary super accounts would cost super funds around $350 million in annual dollar-based fees, which would have implications on their cost base, including the charging of higher fees for the same service members currently receive.
"As there is a cross-subsidy of inactive accounts to active ones, these changes will put pressure on the revenue of many funds, and their administrators," Rice Warner said.
"The Single Touch Payroll process should help to reduce costs, but on balance, administrators will have lower margins.
"Fees will need to rise to provide the same services to members. This will make many smaller funds unviable, and we have already started to see merger activity as these funds seek to avoid the price increases."