MySuper — Australia's Default Super Product Explained

MySuper — Australia’s Default Superannuation Product

MySuper is Australia’s regulated default superannuation product — the fund option employees are placed in automatically when they don’t make an active choice. Introduced in 2013, MySuper replaced a fragmented landscape of employer defaults with a consistent, APRA-supervised product type. As of 2025, most Australian workers with super are in a MySuper product or a fund that was formerly a MySuper default.

This section explains how MySuper works, how it is regulated, how to evaluate your default fund, and how to switch if it isn’t meeting your needs.

What Makes a Product “MySuper”?

To offer a MySuper product, a super fund trustee must receive APRA authorisation. Authorised products must meet strict requirements:

MySuper Product Types

There are two permitted MySuper structures:

Single diversified option — All members (regardless of age) invest in the same portfolio, typically a balanced or growth allocation. This is the most common structure used by large industry funds (AustralianSuper, Hostplus, Aware Super, REST, Cbus).

Lifecycle (age-based) option — The investment mix automatically shifts as you age, reducing growth exposure and increasing defensive assets as you approach retirement. Used by some funds including REST Core Strategy, CSC, and some retail fund defaults. See Lifecycle Super Funds.

How to Evaluate Your MySuper Product

Use these three steps to assess whether your default fund is performing for you:

Step 1 — Check the performance test result Go to the ATO’s YourSuper comparison tool and find your fund. Products that have failed the annual APRA performance test are clearly flagged. A failure means the fund underperformed its own benchmark by more than 0.5% per year over 8 years — this is a meaningful gap.

Step 2 — Compare fees Find the total cost ratio (or total annual fee) for your fund at a $50,000 balance. For large industry fund MySuper products, fees typically range from 0.5%–0.8% p.a. Anything above 1.2% for a standard balanced option warrants scrutiny.

Step 3 — Check 10-year returns APRA’s fund-level data and the YourSuper tool show net 7- and 10-year returns. Compare your fund’s return against similar-risk products. A persistent 0.5–1% gap compounds to a significant dollar difference over time.

Illustrative only — assumes 7% gross return and compounds the fee/performance difference.

Articles in This Section

Understanding MySuper

• MySuper Explained — What MySuper is, how it works, and who is in a MySuper product
• Are Default Super Funds Good? — How to assess your default fund’s quality and when to consider switching
• MySuper vs Retail Super — Comparing industry and retail super products: performance, fees, and structure
• Lifecycle Super Funds — How age-based investment strategies work and whether they suit you

Regulation and Oversight

• MySuper Regulation — How APRA authorises and supervises default super funds
• MySuper Performance Test — How APRA’s annual test works, what failure means, and which funds have failed
• MySuper Fee Cap — How the 3% administration fee cap protects members with low balances

Tools and Comparison

• YourSuper Comparison Tool Guide — How to use the ATO’s free MySuper comparison tool
• MySuper Dashboard Guide — How to read your fund’s annual product dashboard and what each metric means

Switching

• Switch From MySuper to Choice — How to move from a default MySuper option to a choice investment option or a different fund

Is Your Default Fund Good Enough?

Most workers who have never actively chosen a fund are in a MySuper product. For many, the default is adequate — particularly in large, well-run industry funds with strong performance track records. But “adequate” isn’t always “optimal.”

Your default fund is probably fine if:

• It has passed the APRA performance test consistently
• Fees are competitive (total cost under 1% for a $50,000 balance)
• You have the right amount of default insurance for your circumstances
• You’re in a large, well-governed fund with a 10-year track record

Consider reviewing or switching if:

• Your fund has failed the APRA performance test
• Fees are materially above peers (e.g., 1.2%+ for a standard balanced option)
• You want an investment option not available in your default (indexed, ethical, high-growth)
• Your default insurance doesn’t match your needs

See also: How to Choose a Super Fund, Superannuation Explained

How the APRA Performance Test Works

APRA’s annual performance test compares each MySuper fund’s net investment returns (after fees and tax) against a benchmark for the same investment option over an 8-year rolling period. Funds that underperform the benchmark by more than 0.5% per year are declared to have “failed.”

A fund that fails must notify all members within 28 days. Members can switch funds at any time without penalty. Funds that fail for two consecutive years are prohibited from accepting new members.

The test is controversial — some argue an 8-year benchmark penalises funds with defensive strategies that protected members during market downturns. Nevertheless, it has driven significant action: multiple high-fee, underperforming funds have merged with stronger performers or exited the market since the test began in 2021.

MySuper Fees — What the Law Requires

MySuper products are subject to additional fee restrictions compared to other super options:

Administration fee cap: Super funds cannot charge more than 3% of the account balance per year in administration and investment fees for accounts under $6,000. This cap protects members with small balances — who historically paid high fixed fees that could wipe out returns entirely.

No exit fees: Banned since 1 July 2019. You can leave your super fund or change investment options without any exit or withdrawal penalty.

No adviser commissions: Advice fees can only be charged to your account with your explicit written consent. No default advice fees are permitted in MySuper products.

The YourSuper Comparison Tool

The ATO’s YourSuper comparison tool (accessible via myGov or ato.gov.au) allows you to compare all MySuper products on a standardised basis:

• 1-year and 5-year net return (after fees and tax)
• Annual fee in dollars at $6,000, $50,000 and $150,000 balances
• APRA performance test status

The tool is particularly useful for workers who have been auto-enrolled in their employer’s default fund and want to check whether it is competitive. It is updated regularly with current fund data.

Frequently Asked Questions

What happens if my super fund fails the APRA performance test?

Your fund must write to you within 28 days explaining that it has underperformed. The letter must include information about how to switch funds. You are not required to switch — but APRA expects members to be able to make an informed decision. Funds failing consecutive tests are barred from accepting new members, which typically triggers a merger or wind-up.

Can I choose a different fund from my employer’s default?

Yes — under the Superannuation Guarantee (SG) rules, most employees can choose the super fund where employer contributions are paid (your “stapled” fund or any eligible fund). Your employer cannot force you into their preferred fund if you want your contributions directed elsewhere. Submit a standard choice form to your employer specifying your preferred fund.

What is “stapling” and how does it affect me?

Since November 2021, the ATO “staples” your existing super account to you when you start a new job — meaning employer contributions automatically go to your existing fund rather than opening a new account. This prevents the proliferation of multiple duplicate accounts (and multiple sets of insurance premiums). If you don’t have an existing eligible account, your employer’s default fund is used.