How to Choose a Super Fund in Australia

Your super fund choice could mean a $100,000+ difference at retirement. Here's what actually matters.

Last updated 1 July 2025 · Source: ATO — Choosing a super fund · Financial year: 2025–26 Current 2025–26
The Answer
Fees + returns = everything
A 0.5% difference in fees on a $100,000 balance costs you $50,000+ over 30 years. Compare fees first, then investment options and insurance.

What to Compare

FactorWhy It Matters
FeesThe single biggest factor. Even 0.5% pa difference compounds to tens of thousands over a career.
Investment performanceLook at 5–10 year returns, not 1 year. Past performance isn't a guarantee but persistent underperformance is a red flag.
InsuranceMost funds include default life and TPD insurance. Compare the cover amount and premiums — some funds charge significantly more.
Investment optionsDo you want to choose your own asset allocation? Some funds offer more flexibility than others.
APRA performance testFunds that fail APRA's annual performance test must notify members. Consider switching if your fund has failed.

Industry vs Retail vs SMSF

Industry funds (AustralianSuper, HESTA, Cbus, UniSuper) are run on a profit-for-members basis. They've historically had lower fees and competitive returns. They cover specific industries but most accept anyone.

Retail funds (BT, Colonial First State, MLC, AMP) are run by banks and financial institutions for profit. They tend to have higher fees but may offer more investment choice and financial planning services.

SMSFs (Self-Managed Super Funds) give you full control but come with significant compliance costs and time commitments. Generally only worthwhile if your balance exceeds $200,000–$500,000.

Consolidating Your Super

If you have multiple super accounts from different jobs, consolidate them. Multiple accounts mean multiple sets of fees and insurance premiums eating into your balance. You can consolidate through myGov → ATO → Super → Manage → Transfer super.

Frequently Asked Questions

Can I choose my own super fund?

Yes. Most employees can choose their fund using a 'Choice of Fund' form. Your employer must pay into the fund you nominate, unless you're covered by a workplace agreement that specifies a particular fund.

What if I don't choose a fund?

Your employer will pay into their default fund (a 'stapled fund' — the fund linked to your tax file number from a previous job, or the employer's default if you have no existing fund).

How do I consolidate super?

Log into myGov, go to ATO linked services, then Super → Manage → Transfer super. You can transfer balances from old funds into your chosen fund. It usually takes 3-5 business days.

What Changed

1 Jul 2025 APRA performance test results published. Check if your fund passed.
Last updated: 1 July 2025 · Source: ATO — Choosing a super fund · Financial year: 2025–26