The Your Future, Your Super (YFYS) package took effect from 1 July 2021, introducing three major changes to Australian superannuation: an annual performance test for MySuper products, stapling of super accounts, and the YourSuper comparison tool.
1. Annual Performance Test (APT)
From 2021, APRA tests every MySuper product against a benchmark return each year. The test compares each fund’s actual investment return (after fees) over the past 8 years against a composite benchmark based on the fund’s asset allocation.
What happens if a fund fails?
- First failure: The fund must write to all members within 28 days, notifying them that their product has underperformed. The notification must include the YourSuper comparison link.
- Second consecutive failure: The fund is closed to new members until it passes the test again.
Which funds are tested?
The APT initially applied to MySuper products only (the default funds used by employees who don’t choose their own fund). The Government extended the test to cover trustee-directed products (choice options) from 2023, though implementation of this extension has been phased.
Has the performance test worked?
Several funds have failed the annual performance test since 2021, with many members subsequently moving to better-performing funds. APRA has also accelerated fund mergers — the number of super funds has declined significantly as smaller, underperforming funds merged into larger ones.
2. Stapling — Your Super Follows You
From 1 November 2021, stapling changed how new employees are assigned a default super fund.
Before stapling: If an employee didn’t choose a fund, the employer created a new default fund account — leading to multiple accounts accumulating across jobs.
After stapling: If a new employee doesn’t nominate a fund, the ATO identifies their stapled fund (their existing super account) and the employer contributes to that. If the employee has no existing account, the employer’s default applies.
Impact of stapling
- Reduces unintended account multiplication
- Employees retain their existing fund (and any insurance) when changing jobs
- Employees should actively choose their preferred fund if they don’t want the stapled default
Employer obligations
Employers must query the ATO via ATO Online Services before creating a new super account for an employee who hasn’t provided a fund choice. The ATO returns the employee’s stapled fund details within seconds.
See Stapled Super Fund Explained.
3. YourSuper Comparison Tool
The ATO’s YourSuper comparison tool allows Australians to compare MySuper products by:
- Investment return (net of fees, after the performance test benchmark)
- Annual fees (for a $10,000 and $50,000 balance)
- Fund name and trustee
- Fund type (industry, retail, public sector)
Funds that have failed the performance test are highlighted.
What YFYS Means for Members
| If you… | Recommended action |
|---|---|
| Are in a MySuper default product | Check the YourSuper tool to see if your fund has failed the performance test |
| Are changing jobs | You don’t need to open a new fund — your existing fund will follow you (unless your employer has a different arrangement) |
| Haven’t reviewed your fund recently | Use the YourSuper tool to compare your current fund against alternatives |
Frequently Asked Questions
My fund failed the performance test. Should I switch immediately? A single failure warrants a review, not necessarily an immediate switch. Past performance is not a reliable indicator of future performance. Compare fees, services, insurance, and long-term outlook before deciding.
Does stapling affect my employer’s existing default fund? No — employers still have a default fund. Stapling only applies when an employee has an existing account. If an employee is genuinely new to the workforce with no prior super account, the employer’s default still applies.
Are choice super products (non-MySuper) tested? The APT was extended to trustee-directed products, but the scope and implementation have been more limited than for MySuper products. Check APRA’s fund-level data at apra.gov.au.
For more: Government Super Schemes, APRA Heatmap Guide, Best Performing Super Funds, MySuper Explained. For advice on whether to switch funds, speak with a licensed financial adviser via MoneySmart.