How to Compare Super Funds (and Stop Leaving Money on the Table)
How to compare super funds in Australia using fees, net returns, insurance, and the free YourSuper tool, plus how to switch without losing your cover.
By Timothy Hirou GaschereauPublished 10 min read
Try it yourself
Most Australians spend more time choosing a Netflix show than their super fund, despite super being their second-largest asset after their home. That's a costly habit: a 0.5% fee difference can cost you $50,000+ over a career. This guide covers how to compare super funds properly, using the free government tools, and how to switch without tripping over the traps. It's part of our compare and choose series, and it's general information only, not financial advice.
🎯 The essential: Fees and net returns compound over decades into tens of thousands of dollars of difference. Compare net returns over 5 to 10 years (not one), total fees (aim under 1%), your investment option, and any insurance. The free YourSuper tool ranks every MySuper product. Before you switch, check you won't lose insurance cover.
Why comparing your super fund is one of the highest-impact money moves
Most people set and forget their super: it lands in a default fund when they start a job and just sits there for decades. The difference between a well-performing, low-fee fund and a mediocre one isn't a rounding error, it's tens of thousands of dollars by preservation age, because fees and returns compound.
Same salary, same contributions, same starting balance and investment option, and a single half-percent fee difference produces a six-figure gap over 30 years. No extra work, no risky bets, just a better fund. That's why knowing how to compare super funds is one of the highest-leverage decisions you can make.
The key things to compare when choosing a super fund
Not all comparison points are equal. Here's what actually moves the needle.
| What to compare | Why it matters | What to look for |
|---|---|---|
| Net returns (5 to 10 yr) | Short-term returns are noise; long-term reveals real performance | Consistent returns above the median for your option |
| Total fees (admin + investment) | Fees reduce your balance every year | Under 1% of balance per year in total |
| Investment option & risk | Growth, balanced and conservative have very different profiles | Match the option to your age and risk tolerance |
| Insurance inside super | Death, TPD and income protection cost you | Check what you have, what it costs, and if you need it |
| Member services | Tools, advice access, education | A fund that supports your level of engagement |
| APRA performance test | Underperforming funds are flagged by the regulator | Your fund should have passed, not failed |
The two that matter most: net returns over 5 to 10 years (one year is meaningless; compare like for like, not a growth fund against a balanced one) and total fees (add the admin and investment fees; aim to keep the total under 1% of your balance a year). Our fees calculator shows the long-run cost of that gap.
MySuper vs choice options: what's the difference?
MySuper is the default: when you start a job and don't choose a fund, your contributions go into a MySuper product. These are simple, standardised by law, regulated by APRA, and subject to an annual performance test (funds that fail must notify members). Choice products are everything else: more investment options and flexibility, but more complexity and responsibility. Most Australians are in a MySuper product, which is fine, but check whether yours has passed the APRA performance test.
How to use the YourSuper comparison tool
The YourSuper comparison tool is free, government-run, and the fastest way to see how your fund stacks up. Use the public version on the ATO site, or log in to myGov, link to the ATO, and go to Super, Information, YourSuper comparison for a personalised view showing your actual fund. The tool ranks all MySuper products by fees and net returns over seven years, and flags funds that failed the APRA test with a red “Underperforming” label.
If your fund is flagged as underperforming, don't ignore it: the regulator has formally determined it delivered below-benchmark returns, net of fees, over a sustained period. That's a serious signal worth acting on.
Past returns vs persistent underperformance: what to watch for
Said plainly: past returns do not guarantee future returns. But that doesn't make returns meaningless. One bad year is noise (markets fall, even good funds have rough patches). Five to ten years of below-median returns combined with above-average fees is a pattern worth acting on. The APRA performance test is designed to catch exactly this: it benchmarks each MySuper product against an objective hurdle over an eight-year rolling period, so a failing fund has structurally underdelivered, not just had a bad year. Use the APRA MySuper heatmap alongside YourSuper for the full picture.
Industry vs retail vs SMSF: a quick overview
A general overview only, with genuine trade-offs and none universally better. Industry funds are run for members, not shareholders, so profits go back to members and fees are typically lower (most are now open to anyone). Retail funds are run by financial institutions with a profit motive, which can mean higher fees but sometimes more options and advice. SMSFs give you full control (and full responsibility), with real accounting, audit and admin costs; most professionals suggest they only make economic sense above roughly $250,000 to $500,000. Talk to a licensed adviser if you're considering one.
How to actually switch or consolidate super funds
Switching is simpler than most people think, but there are traps.
- Trap 1: losing your insurance. Closing a super account loses any insurance attached to it. If you have death cover or TPD through your old fund, check your new fund provides equivalent cover before you roll over, since pre-existing conditions can affect eligibility.
- Trap 2: exit fees. Banned for MySuper products since July 2019, but some older or non-MySuper accounts may still have them. Check the PDS.
- Trap 3: multiple accounts. Several jobs can mean several accounts each charging fees. Consolidating via myGov stops the fee bleed.
To switch: log in to myGov and link to the ATO, use the YourSuper comparison to pick a fund, apply for membership on the new fund's website, roll over your old balance via myGov, and notify your employer with a choice of fund form. Your employer contributions follow you automatically, and nothing is lost in transit. The bottom line: comparing your super is a five-figure decision hiding in plain sight. Check the YourSuper tool once a year, keep total fees under 1%, and don't switch on a single bad year. See how the compounding works with our compound interest calculator.
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❓ Frequently asked questions
Can I choose any super fund I want?
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Generally, yes. Most Australians can choose their own super fund and instruct their employer to pay contributions there. Some awards or enterprise agreements may restrict your choice, so it's worth checking with the ATO if you're unsure.
How often should I review my super fund?
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Once a year is a reasonable habit, perhaps when you do your tax return or when APRA releases its annual performance test results (usually August to September). You don't need to obsess over it monthly, but a yearly check keeps you informed.
Does switching super funds affect my employer contributions?
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No. Once you notify your employer of your new fund using a choice of fund form, contributions go straight to the new fund. Nothing is lost during the switch, and there's no gap in contributions.
What if I have multiple super accounts?
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You're paying multiple sets of fees and potentially holding duplicate insurance cover. Log in to myGov, link to the ATO, and use the transfer super function to consolidate. The ATO can also help you find any lost or unclaimed super.
Is it worth switching to a fund with slightly better returns?
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It depends on the size of the difference and how long you have until retirement. A 0.5% improvement in net returns over 30 years on a $100,000 balance is worth roughly $100,000 at retirement. But switching for a 0.1% difference in a single year is probably not worth the admin. Look at fees, long-term net returns, insurance, and services together.
What is the APRA performance test?
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APRA runs an annual test that benchmarks each MySuper product's net investment returns against an objective performance hurdle over an eight-year rolling period. Funds that fail must write to their members. If your fund has failed, you'll see an "Underperforming" flag on the YourSuper comparison tool.
📚 Recommended reading
The Barefoot Investor
Scott Pape
The Barefoot Investor
Scott Pape
Australia's best-selling money book ever. A simple system for accounts, budgeting, debt and a real emergency fund in one.
Retirement Made Simple
Noel Whittaker
Retirement Made Simple
Noel Whittaker
Australia's godfather of personal finance demystifies super, the pension and making your savings last. The plain-English retirement handbook every Aussie should read before they stop working.
Making Money Made Simple
Noel Whittaker
Making Money Made Simple
Noel Whittaker
Australia's classic, comprehensive money guide covering tax, super and investing, updated for today.
Some links above are affiliate links. If you buy through them, Snowball Invest may earn a small commission at no extra cost to you. We only recommend books we'd suggest anyway.
Sources
This article is general information only and does not constitute personal financial advice. Super rules are complex and individual circumstances vary. The worked example is illustrative. Consider speaking with a licensed financial adviser before changing your super.
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Timothy Hirou Gaschereau
Founder of Snowball Invest, not a financial adviser.
I write about what I'm learning myself, because nobody ever taught us how to take control of our own money. It's a skill, not a mystery, and it's never too late to learn it. The best day to start was yesterday, the second best is today.
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