Super fund fees compound against you — the same way investment returns compound for you. A fee of 1.5% per year on a $100,000 balance costs $1,500 this year. But it also costs you the future investment growth that $1,500 would have generated. Over 20–30 years, the effect is significant.
Understanding which fees you’re paying, what they pay for, and how they compare across funds is essential for making an informed super decision.
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Types of Super Fees
Administration Fee
A fee for managing your account — record-keeping, member communications, online portals, and general fund operations. This is often structured as:
- A fixed dollar amount per year (e.g. $60–$120/year, typically charged weekly or monthly)
- Plus a percentage of your balance (e.g. 0.04–0.15% per year)
Some funds charge one or the other; many charge both.
Investment Fee
A percentage charged by the fund’s investment managers for managing the assets in your chosen investment option. Active management (where fund managers make decisions about which assets to buy and sell) typically costs more than passive/index management (where the fund tracks a market index).
Typical ranges:
- Passive/index option: 0.05–0.20% per year
- Actively managed option: 0.40–0.80% per year
Indirect Cost Ratio (ICR)
Costs embedded within investment structures — for example, fees charged by the underlying managers of unlisted assets (property, infrastructure, private equity). These don’t appear as a direct charge on your account; instead, they reduce the return credited to your account. They are disclosed in the fund’s Product Disclosure Statement (PDS).
Total Cost Ratio (TCR) / Total Annual Fee
The most useful single number: the sum of the administration fee (percentage component), investment fee, and indirect cost ratio, expressed as a percentage of your balance. APRA requires funds to disclose TCR for each investment option.
The fixed dollar administration fee adds to this — its effective percentage impact decreases as your balance grows.
Transaction Costs (Buy/Sell Spread)
A small cost applied when money moves in or out of an investment option — when you make a contribution, withdrawal, or switch options. These reflect the actual cost of buying or selling the underlying assets.
Typical buy/sell spreads: 0.02%–0.25% of the amount transacted. These are one-off transaction costs, not ongoing fees.
Advice Fee
Only applies if you use the fund’s intra-fund financial advice service. Not charged to all members. Optional.
Full Fee Comparison — Major Australian Super Funds
The table below shows approximate fees for the default balanced/MySuper option for major Australian super funds on a $50,000 balance. Fees are drawn from fund PDS documents and APRA data. Always check the fund’s current PDS for exact figures, as fees are updated periodically.
| Fund | Fixed Admin Fee | Investment Fee + ICR | Total Annual Fee ($50k balance) | Fund Type |
|---|---|---|---|---|
| AustralianSuper (Balanced) | ~$62/yr + 0.04% | ~0.55% | ~$397 (~0.79%) | Industry |
| Hostplus (Balanced) | ~$78/yr + 0.00% | ~0.48% | ~$318 (~0.64%) | Industry |
| Australian Retirement Trust (Balanced) | ~$78/yr + 0.05% | ~0.52% | ~$383 (~0.77%) | Industry |
| Aware Super (Growth) | ~$52/yr + 0.15% | ~0.55% | ~$427 (~0.85%) | Industry |
| REST (Core Strategy) | ~$78/yr + 0.00% | ~0.55% | ~$353 (~0.71%) | Industry |
| UniSuper (Balanced) | ~$96/yr + 0.00% | ~0.44% | ~$316 (~0.63%) | Industry |
| Cbus (Growth Plus) | ~$78/yr + 0.00% | ~0.57% | ~$363 (~0.73%) | Industry |
| HESTA (Balanced Growth) | ~$62/yr + 0.04% | ~0.53% | ~$374 (~0.75%) | Industry |
| Colonial First State (FirstChoice) | ~$180/yr | ~1.15% | ~$755 (~1.51%) | Retail |
| MLC MasterKey | ~$180/yr | ~0.90% | ~$630 (~1.26%) | Retail |
| BT Panorama Super | ~$180/yr | ~1.00% | ~$680 (~1.36%) | Retail |
Approximate figures as at early 2026. All figures are for the fund’s default balanced/MySuper option. Fixed fees are annualised. Actual fees depend on your balance, chosen option, and fund’s current fee schedule. Refer to each fund’s PDS for precise figures.
Index Option Fees (Lower-Fee Alternative Within the Same Fund)
Many industry funds offer a low-cost index (passive) option alongside their actively managed default. These typically carry significantly lower investment fees:
| Fund | Index Option | Approx. Total Annual Fee ($50k) |
|---|---|---|
| AustralianSuper | Indexed Diversified | ~$130–$160 (~0.26–0.32%) |
| Hostplus | Index Balanced | ~$115–$140 (~0.23–0.28%) |
| Australian Retirement Trust | Index Balanced | ~$130–$160 (~0.26–0.32%) |
| UniSuper | Listed Property/Shares Index | ~$110–$140 (~0.22–0.28%) |
Approximate figures — check fund PDS for current rates.
The Dollar Impact of Fees Over Time
On a $50,000 starting balance, with $10,000 in additional contributions per year, over 25 years (7% gross return):
| Annual Fee (% of balance) | Approximate Balance at Year 25 | Amount Lost to Fees |
|---|---|---|
| 0.25% | ~$785,000 | ~$35,000 |
| 0.75% | ~$740,000 | ~$80,000 |
| 1.20% | ~$700,000 | ~$120,000 |
| 1.80% | ~$645,000 | ~$175,000 |
Illustrative only — assumes constant annual returns and fees. Actual outcomes will vary. Does not account for the fixed dollar fee component, which affects small balances more than large ones.
The difference between a 0.25% fee fund and a 1.80% fee fund in this scenario is approximately $140,000 at retirement — entirely from fee drag.
Fixed Fee vs Percentage Fee — Which Is Better?
Super funds typically charge both a fixed dollar fee and a percentage-of-balance fee. The relative impact of each changes as your balance grows.
- Fixed dollar fees have a greater proportional impact on small balances. $78/year on a $5,000 balance is 1.56% — on a $200,000 balance it is just 0.039%.
- Percentage-of-balance fees grow in dollar terms as your balance grows — a 0.5% fee on $200,000 is $1,000/year.
For small balances, a fund with a very low fixed dollar fee is important. For large balances, the percentage investment fee matters most.
Are Administration Fees Tax Deductible?
Super fund administration fees paid from your super account are not directly deductible in your personal tax return — they are paid from within the super fund, not from your personal income. The fund itself can deduct these costs in calculating its taxable income, which flows through to member returns.
If you pay super advice fees from outside super (e.g. for a Statement of Advice from a financial adviser), a portion relating to ongoing super management may be deductible — consult your tax adviser.
Frequently Asked Questions
What is a reasonable super fund fee in Australia? For a balanced option in a well-run industry fund on a $50,000–$100,000 balance, a total annual fee (including fixed and percentage components) of 0.6–0.9% is broadly reasonable. Fees above 1.2–1.5% for a standard balanced option are high by industry benchmarks and warrant scrutiny. Index options within major funds can be obtained for 0.2–0.4%.
Why do retail super funds charge more than industry funds? Retail funds are owned by financial institutions (banks, insurance companies) and distribute profits to shareholders. Industry funds are not-for-profit — all revenue above costs goes back to members. This structural difference results in industry funds charging lower fees on average. There are exceptions, but the difference is consistent across APRA data.
If I choose a cheaper (index) option, will I earn less return? Not necessarily. Index options track market benchmarks by design. Active managers charge higher fees to try to beat the benchmark — but research consistently shows that most active fund managers do not outperform their benchmark over long periods after fees. In practice, a low-cost index option often delivers better net returns than a high-fee active option, even if the gross returns are similar.
Can I negotiate super fees? Generally no — super fees are set by the fund trustee and disclosed in the PDS. However, if you are a large employer, you may have an enterprise arrangement with a fund that provides lower fees for employees. Speak with your employer’s HR team if you think this may apply.
See also: Super 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.