Ms O'Dwyer said she was concerned about high fees for super members and pointed to federal budget measures aimed at capping or banning administration and investment fees, exit fees and inappropriate insurance premiums. The Productivity Commission is also looking at the super system and is due to report soon. "This letter, on the face of it appears to be an out-and-out gouge of Commonwealth Bank customers. I cannot see on what basis they would be imposing this fee on customers," Ms O'Dwyer told Fairfax Media. "Compliance with the law is the cost of business, it shouldn’t be paid for using members' retirement savings. There are clearly many other funds that are not choosing to charge members additional fees and members should consider whether their current fund is the best fit for them." Loading Replay Replay video Play video Play video Colonial First State has 780,000 superannuation accounts, according to figures from the Australian Prudential Regulation Authority. If all accounts were charged the same levy, that would amount to $79.95 million raised from Colonial First State members alone.

However, the letter states customers with multiple accounts will only be charged once, while accounts with balances below $5000 or holding only suspended investments will not be charged. The fee charged by Commonwealth Bank is on top of existing administration and investment fees. Loading In the letter to super members, Commonwealth Bank said a number of "highly technical and complex" regulatory reforms were behind the fee hike. The letter did not state which reforms were to blame for the fee. "The nature of these regulatory reforms mean we have invested significant resources ensuring we comply with them and we expect new reforms will continue to be introduced across the industry over the coming years," the letter says.

Other bank-run super funds also charge smaller fees to recoup the cost of regulatory compliance, detailed in the product disclosure statements. BT, which is owned by Westpac, imposes a fee if the compliance costs exceeed a certain amount and last year charged customers an average of $26. ANZ's OnePath has a similar fee for regulatory compliance on top of regular administration fees. NAB, which owns MLC, does not charge a fee for regulatory compliance and has no plans to do so, though it did in 2012 and 2014, a spokesperson said. A spokesperson for Industry Super Australia said the not-for-profit industry funds were subject to the same regulation but he was not aware of any fund charging "a levy of this nature upon their members". CBA probably have better IT than the Australian military Rainmaker's Alex Dunnin Alex Dunnin, the director of research at superannuation researcher Rainmaker Information, described the fee as "extraordinary".

"It does seem weird that the government introduced regulatory reforms hoping to improve things, then they [CommBank] come along and say there's a special charge for that," Mr Dunnin said. Mr Dunnin said it was true regulatory reform was complex but said Commonwealth Bank was a "complex, sophisticated organisation" that should be able to handle regulatory change. Loading "CommBank, love them or hate them, has some of the most sophisticated technology in the financial services industry – they probably have better IT than the Australian military," he said. A spokesperson for the Association of Superannuation Funds of Australia, which represents the broader super industry, would not comment on the Commonwealth Bank fee but said there had been a "significant increase in regulatory burden over the last decade".