MySuper Explained — Australia's Default Super Product
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
MySuper is Australia’s standardised default superannuation product — the fund option that eligible employees are placed in automatically when they don’t nominate their own super fund. Introduced in 2013, MySuper replaced the fragmented landscape of employer default funds with a regulated, comparable product type.
What Is MySuper?
MySuper is a product authorisation granted by APRA. A fund must receive APRA approval before offering a MySuper product. To gain and maintain authorisation, a MySuper product must meet strict requirements around:
- Simple features: Single diversified investment option (or lifecycle — see below)
- Low fees: Capped administration fees for low balances; transparent fee disclosure
- No commissions: MySuper products cannot pay commissions to financial advisers (a remnant of pre-Future of Financial Advice days)
- Annual performance test: APRA tests every MySuper product each year and notifies members if their product underperforms
Who Has a MySuper Account?
If you are an employee who has never chosen your own super fund, you are likely in a MySuper product — specifically your employer’s nominated default. The stapling rules introduced in 2021 mean that changing jobs no longer automatically creates a new MySuper account; instead, your existing fund follows you.
Single Investment Option vs Lifecycle
Most MySuper products offer one of two structures:
Single diversified option
One investment option — typically a balanced or growth profile — applies to all members. You are invested in the same portfolio regardless of age. Examples: AustralianSuper’s default Balanced option, Hostplus’s Balanced option.
Lifecycle (age-based)
Investment risk automatically reduces as you age. For example, a lifecycle fund might invest 90% in growth assets for members under 35 and progressively shift toward 70% growth, then 50%, then 30% as you approach and enter retirement. Examples: REST Core Strategy (lifecycle), some retail fund defaults.
MySuper vs Choice Super
| MySuper | Choice | |
|---|---|---|
| Who uses it | Default (non-choosing) employees | Members who actively select a fund or option |
| Investment options | One (or lifecycle) | Many (sector funds, ethical, indexed, etc.) |
| Fees | Generally low; regulated | Vary widely |
| Performance test | Annual APRA test | Extended to some products; less rigorous historically |
| Insurance | Default cover included (with PYS rules) | May vary |
You are not restricted to MySuper — you can choose any fund at any time using the standard super fund choice form.
MySuper Performance Test
Under the Your Future, Your Super reforms (from 2021), APRA tests each MySuper product’s 8-year investment return against a benchmark. Products that fail must notify members. Products that fail twice consecutively are closed to new members.
This has led to the consolidation of underperforming funds — some have merged with stronger performers to avoid closure.
Frequently Asked Questions
Is MySuper the same as an industry fund? No. MySuper is a product type; industry funds and retail funds can both offer MySuper products. Most large industry funds (AustralianSuper, Hostplus, Aware Super) have their primary default option authorised as MySuper.
Can I switch out of MySuper? Yes — you can choose any complying super fund at any time. If you want more investment options (e.g., sector funds, ethical screens, indexed options), you may need to move to a non-MySuper product within the same fund or to a different fund.
Are MySuper products always better than choice products? Not necessarily — the performance test and fee caps mean many MySuper products are good value. But some retail choice products with low fees and strong performance may also be competitive. Comparison tools like the ATO’s YourSuper tool can help.
If I’ve never chosen a super fund, how do I find out which MySuper product I’m in? Log in to myGov and go to ATO online services → Super. This will show all super accounts linked to your Tax File Number, including the fund name and product. Alternatively, check a recent pay slip (the fund should be listed), or contact your payroll department to find out which fund your employer pays into.
What is stapling and how does it interact with MySuper? From 1 November 2021, if you start a new job and don’t nominate a super fund, your employer must look up your existing “stapled” fund via the ATO and pay contributions there — rather than opening a new account in the employer’s default fund. This means you won’t automatically get a new MySuper account every time you change jobs. Stapling reduces account duplication and fee erosion from multiple small accounts.
Do MySuper products offer financial advice to members? All MySuper products must provide access to basic intra-fund advice — simple advice on topics like insurance cover, contribution levels, and investment options within the fund. This is typically provided at no additional charge. More complex advice (estate planning, tax strategy, or advice comparing products across funds) is not covered by this and would require a separately licensed financial adviser.
Can I be in a MySuper product and still choose a different investment option? No — if you choose a non-default investment option, you are no longer in the MySuper product by definition. You become a choice member within the same fund. You still have the same fund account, insurance, and member number, but the MySuper rules (fee cap, performance test) apply to the default product, not your chosen option.
What happens if my employer’s nominated MySuper product fails the APRA performance test? The fund must notify all members within 28 days, direct them to the ATO’s YourSuper comparison tool, and explain the failure. Your employer’s default remains in place — employers aren’t automatically required to change their nominated fund — but you have the right to choose any other complying fund and can exercise that right regardless of your employer’s default choice.
Is there a minimum balance or contribution required to maintain a MySuper account? No minimum balance is required. However, accounts under $6,000 that are inactive for 16 or more consecutive months may be transferred to the ATO as unclaimed super money under the Protecting Your Super rules. You can always claim this money back via myGov. See MySuper Fee Cap.
For more: Are Default Super Funds Good?, MySuper vs Retail Super, YourSuper Comparison Tool Guide. For advice on whether your default fund is right for you, speak with a licensed financial adviser via MoneySmart.