That’s absurd. Reporting super details to the government for 80,000 Australians would not be a significant ongoing cost for any competent provider.

There would be an initial cost to develop the reports, the ongoing cost would be minimal as it would be spread across the existing costs to maintain their reporting infrastructure.

If somehow this is true for some super providers, you should avoid those providers as they are already operating with incredible inefficiency.

I do wonder how it would work for those in defined benefit schemes, but I doubt any of those are above the $3m threshold.