Super Fund Fees Australia — Comparison and Guide
This article provides general information only and does not constitute financial advice. For advice tailored to your situation, consult a licensed financial adviser. Learn more.
Contents
Super fund fees are one of the most controllable factors in your retirement outcome. Unlike investment returns — which are uncertain — fees are charged regardless of performance. Even small differences in annual fees compound significantly over decades.
The Impact of Fees in Numbers
A 1% annual fee difference on a $100,000 balance costs approximately $129,000 over 30 years (at 7% gross return). The compounding effect means you’re not just paying the fee — you’re losing all future growth on that money too.
| Fee rate | Balance after 30 years ($100k start, 7% gross return) |
|---|---|
| 0.5% | ~$515,000 |
| 1.0% | ~$432,000 |
| 1.5% | ~$363,000 |
| 2.0% | ~$305,000 |
Types of Super Fees
Administration fee — Covers account maintenance, statements, and compliance. Can be a fixed dollar amount, a percentage of balance, or a combination of both.
Investment fee — The cost of managing your investment option. Varies by option: index options charge 0.05%–0.20%; active options charge 0.30%–0.80%.
Indirect Cost Ratio (ICR) — Costs embedded inside your investment returns, such as fees paid to underlying managers for unlisted assets. Not deducted from your account — they reduce the reported return.
Performance fee — Charged only when an investment manager outperforms a benchmark. Common in alternatives-heavy and active strategies.
Buy/sell spread — A transaction cost applied when you invest or withdraw. Typically 0.00%–0.15%. Not an exit fee — exit fees were banned in 2019.
Advice fee — An ongoing fee paid to a financial adviser, charged to your account only with your consent.
Total Cost Ratio (TCR) = Admin fee % + Investment fee % + ICR % + Performance fee % — the most complete basis for comparison.
Fees Guides
Overview and Comparison
- Super Fund Fees Australia — Full Guide — How all fee types work, what each means, and a comparison table of fees across major Australian funds
- Cheapest Super Funds Australia — Which funds charge the lowest total fees and why low fees matter
- How Much Are You Paying in Super Fees? — Average fee benchmarks, the real dollar cost, and how to check what you’re actually paying
- Super Fee Calculator — How to Calculate the True Cost — Step-by-step guide to calculating your annual fee in dollars and estimating the long-run impact
Understanding Fee Types
- How Are Super Fees Calculated? — How each fee type is calculated, what each one covers, and how to add them together
- Total Cost Ratio (TCR) Explained — The all-in fee measure that captures every cost — and how to use it for accurate comparison
- Indirect Cost Ratio (ICR) Explained — The hidden cost inside your investment returns, and how it affects your balance
- Performance Fees in Super — How performance fees work, when they’re worth it, and what high-water marks mean
Reading Documents and Statements
- How to Read a Super PDS — The key sections to check in a Product Disclosure Statement, including fees, insurance, and investment options
- How to Read Your Super Statement — What each section of your annual statement means and what to look for
Fee Rules and Protections
- Super Exit Fees — Are They Still Allowed? — Exit fees were banned in 2019. What this means, what costs may still apply, and how to switch funds for free
Quick Comparison: What’s a Reasonable Fee?
| Balance | Competitive total fee (balanced option) | High-fee warning |
|---|---|---|
| $10,000 | < $150/year | > $250/year |
| $50,000 | < $400/year | > $700/year |
| $100,000 | < $750/year | > $1,200/year |
| $250,000 | < $1,500/year | > $2,500/year |
These are rough benchmarks for standard balanced or growth options. Alternatives-heavy, ESG, or managed account options may legitimately cost more.
How to Check What You’re Paying in Super Fees
Your super fund must disclose all fees in its Product Disclosure Statement (PDS) and on your annual statement. To find the true annual cost:
- Check your super fund’s website → find your investment option → look for “fees and costs” disclosure (required under ASIC’s Regulatory Guide RG 97)
- Find the Total Cost Ratio (TCR) — the all-in percentage including admin fee, investment fee, and ICR (indirect cost ratio)
- Convert to dollars: TCR × your account balance = annual fee in dollars
Example: A 40-year-old with $150,000 in a fund charging 1.2% TCR pays $1,800/year in fees. Moving to a 0.7% TCR fund saves $750/year — over 25 years, compounded at 7%, that’s approximately $55,000 more at retirement.
APRA’s Super Fund Heatmap — Using It to Compare
APRA publishes an annual superannuation fund heatmap comparing all APRA-regulated super funds across investment performance, fees, and sustainability. The heatmap uses colour coding (green/yellow/red) across multiple metrics.
Key columns to check:
- Net investment return: Performance after fees and tax
- Total fee at each balance tier: Fees at $50k, $250k, $500k balance
- Investment option: The specific option matters — balanced/lifecycle options vary enormously
The APRA heatmap is publicly available at apra.gov.au. It is updated annually with 1, 5, and 10-year performance data.
MySuper Product Dashboard
Since 2021, all MySuper funds must publish a standardised product dashboard on their website showing:
- 1-year and 10-year net return
- Level of investment risk (a standardised measure)
- Annual fee in dollars (at $50,000 balance)
- Comparison against the industry median
The government’s “Your Future, Your Super” reforms also introduced automatic consolidation — members with multiple super accounts are consolidated into their active fund, and underperforming funds are flagged by APRA.
Comparing Super Fees by Fund Type
| Fund type | Typical TCR range | Investment approach |
|---|---|---|
| Large industry funds (AustralianSuper, Aware, Hostplus) | 0.5%–0.85% | Mix of passive and active |
| Retail platform funds | 0.9%–1.8% | Active management, more options |
| Low-cost index funds (Vanguard Super, Australian Retirement Trust indexed) | 0.35%–0.60% | Passive index tracking |
| SMSFs | Varies — $2,000–$5,000+ fixed annual cost | Fully self-directed |
Index-focused investment options within industry funds often charge 0.07%–0.25% in investment fees alone — among the lowest available outside an SMSF.
Frequently Asked Questions
Can I switch super investment options to reduce fees?
Yes — you can change your investment option within your existing super fund at any time (subject to your fund’s rules). Switching from an active option (higher fees) to an index option (lower fees) is one of the simplest ways to immediately reduce your annual cost. No CGT applies to switching investment options inside super.
Are super fund exit fees still charged?
No — exit fees (also called withdrawal fees) were banned from 1 July 2019 under the Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019. You can leave your super fund at any time without a fee for doing so. The only exception is certain legacy products or defined benefit schemes, which may have specific rules.
Does the super guarantee rate affect my fees?
The SG rate (11.5% in FY2024–25) determines how much goes into your account, but not what you pay in fees. Higher contributions mean your balance grows faster — and since most fees are percentage-based, the total dollar amount of fees also grows. This is another reason why minimising the fee percentage matters: it compounds alongside your growing balance.
Calculating Your Super Fund’s Total Cost
Super funds report fees in multiple ways, which makes comparison confusing. To calculate the true annual cost of your fund, consider all fee components:
| Fee type | Typical range | Who pays |
|---|---|---|
| Investment fee | 0.05%–0.80% of balance | Deducted from returns |
| Administration fee | $0–$150/year flat + 0.05–0.30% of balance | Deducted from account |
| Buy-sell spread | 0.0–0.25% per transaction | Paid on contributions and withdrawals |
| Indirect cost ratio (ICR) | 0.00–0.30% | Hidden within fund returns |
| Adviser service fee | 0% (unless you opt in) | Deducted from account if authorised |
The total fee is approximately: investment fee + administration fee + ICR. This is the number to compare between funds.
Example at $100,000 balance:
- AustralianSuper (Balanced): ~0.67%/year = ~$670/year
- A retail super fund: ~1.3%/year = ~$1,300/year
- Difference: $630/year
Over 20 years compounding at 7% gross, that $630/year fee difference results in approximately $27,000 less at retirement. APRA’s annual superannuation statistics show consistently that lower-fee funds have delivered better net-of-fee returns over time.
Super Fund Insurance Premiums
Many Australians are unaware that their super fund charges insurance premiums automatically — reducing their balance each month. Default insurance typically covers:
- Death cover: pays to your estate or nominated beneficiary if you die
- Total and Permanent Disability (TPD) cover: lump sum if you cannot work again
- Income protection: monthly payments if you cannot work temporarily (not all funds)
Insurance inside super uses pre-tax dollars and can be cost-effective — but the premiums reduce your compounding super balance. Review your default insurance levels annually to ensure the cover is appropriate for your circumstances.
Related Guides
- APRA Heatmap Guide — How to use APRA’s annual performance test results
- YourSuper Comparison Tool Guide — How to use the government’s fund comparison tool
- How to Consolidate Your Super — Reducing multiple accounts and the duplicate fees that come with them
- Protecting Your Super Reforms — The 2019 reforms that capped fees for small balances and banned exit fees
For advice tailored to your situation, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.