You web browser may not be properly supported. To use this site and all its features we recommend using the latest versions of Chrome, Safari or Firefox

We are continuing to serve clients during the COVID-19 pandemic More Info.

Bank Building

This blog piece provides an update about the class action against Colonial First State and Commonwealth Bank (CBA), the first class action launched in our ‘Get Your Super Back’ campaign.

The Court recently granted us permission to file an amended statement of claim that adds two new claims to the case, relating to term deposits and adviser commissions.

Term Deposits

The first claim extends the case to cover term deposits. Members of Colonial can choose to place part of their super in term deposits. The only term deposits Colonial offers are with CBA, even though other banks offered higher interest rates. We allege that Colonial should have demanded higher interest rates from CBA or offered term deposits from other banks.

Adviser Commissions

The second claim relates to commissions paid by Colonial to financial advisers. For some members in FirstRate Saver and term deposits, we allege that Colonial has been paying the commissions out of the interest that belongs to members and that this was in breach of Colonial’s duties.

Original Claims

The original claims included in the class action cover FirstRate Saver in the Colonial funds and Cash Deposit, LifeStage and Balanced options in the Commonwealth Essential Super fund. We allege that Colonial invested the cash in these options with CBA at interest rates below the rates available from other banks.

Common Fund Order

The Court has approved the funding arrangements for the class action. This means that in exchange for funding the class action, the litigation funder Augusta Ventures Limited will be entitled to receive a commission from any settlement or judgment awarded by the Court in an amount to be determined by the Court at the time of settlement or judgment.

What do you have to do?

Nothing. If you were ever invested in any of the investment options that are included in the class action then you are automatically a group member.

There are many steps in the legal process that we need to follow before the case proceeds to a trial or settlement. We will update you when significant developments occur.

What else is happening in Get Your Super Back?

We recently announced that we will shortly commence our next Get Your Super Back class action against AMP.

We are also continuing to investigate further class actions against Colonial and other retail super funds, and we expect a number to be launched soon.

Get Your Super Back

If you belong to a retail or bank super fund, you may be owed thousands of dollars for excessive fees and mismanaged investments. We believe you can and should get that money back

Meet the team

Find out more about some of the lawyers working on the Get Your Super Back campaign

Ben Hardwick

Head of Class Actions

Nathan Rapoport

Special Counsel

The contents of this blog post are considered accurate as at the date of publication. However the applicable laws may be subject to change, thereby affecting the accuracy of the article. The information contained in this blog post is of a general nature only and is not specific to anyone’s personal circumstances. Please seek legal advice before acting on any of the information contained in this post.

Thank you for your feedback.

Latest blog posts

Class Action
Key take-outs of the Banking Royal Commission final report

After a shocking and scandalous public inquiry, the Royal Commissioner Kenneth Hayne has handed down his final report into the Banking and Finance sector. The Royal Commission heard serious evidence of misconduct and exposed an industry driven by greed and self-interest, at the expense of customers and members. The report returned to these themes. Said Commissioner Kenneth Hayne: The report provides 76 recommendations that will likely impact many parts of the banking, superannuation and financial advice industries. The report pleasingly addresses some of the more controversial revelations from the Royal Commission, including recommending the immediate end to grandfathered commissions for...

City Buildings
Class Action
Are you paying too much in super fees?

Ever had that moment at the mechanic when your car's malfunction is described to you in baffling detail to justify the bill you're about to receive? Did you just nod along, take deep breath, and pay it? Well, a similar dynamic has long operated in the superannuation sector. For the minority of people who even get around to opening their superannuation statement, a bewildering array of fees may await: investment fees, admin fees, advice fees, switching fees, indirect costs, the list goes on. But super is a complicated business. How can the average person possibly work out whether the fees they are charged are reasonable or not? The problem is a lot of super funds, mainly those owned by the...

Super Piggy Bank Cropped
Class Action
Understand the Banking Royal Commission in 3 minutes

The Royal Commission into the banking sector has been a game changer. It has smashed through the walls of the banking sector and exposed its dodgy culture to the light. The problem is there's just so much detail and noise that most people don't have time to stay across it. But you are – and will continue to be – affected. So it pays to take a few steps back and look at what's happened to date, and where things are likely to head. Essentially, scandals had been mounting for over a decade. It had become clear the problem was systemic: an anything-goes culture that promoted profit above all else. The lack of transparency and accountability, along with a leaky compliance structure, was...

Royal Commision Blog Asset