MySuper products are regulated by the Australian Prudential Regulation Authority (APRA) under the Superannuation Industry (Supervision) Act 1993 (SIS Act) and the Superannuation (Industry) Supervision Regulations 2021. APRA’s regulatory framework aims to ensure that default super funds are well-governed, low-cost, and perform for members.
How APRA Authorises MySuper Products
Before a fund can offer a MySuper product, the trustee must apply to APRA for authorisation. APRA assesses:
- Trustee fitness: Whether the board and key executives meet the “fit and proper” standard
- Product design: MySuper must be a single diversified option or a lifecycle option — not a complex product with multiple embedded choices
- Fee structure: Fees must be transparent and comply with the MySuper fee disclosure requirements
- Insurance: The product must provide or make available at least death cover (life insurance) — TPD and income protection are common but not always mandatory
APRA can revoke a MySuper authorisation if a fund consistently fails regulatory expectations.
Annual Performance Test
From 2021, APRA conducts an annual performance test of every MySuper product. The test compares 8-year net investment returns against a benchmark constructed using the fund’s actual asset allocation and market index returns.
Consequences of failure:
- First failure: Mandatory member notification within 28 days
- Second consecutive failure: Product closed to new members
See MySuper Performance Test for full details.
The Heatmap
APRA publishes an annual superannuation heatmap showing all MySuper and some trustee-directed products ranked by:
- Investment performance (relative to benchmark)
- Fees and costs
- Sustainability of member outcomes
The heatmap uses a red-to-green colour scale — red indicates poor outcomes, green indicates strong performance. It is designed to create transparency and reputational pressure on underperforming trustees.
See APRA Heatmap Guide.
Trustee Obligations Under MySuper
Trustees of MySuper products must:
- Act in members’ best financial interests — the Superannuation Legislation Amendment (Trustee Obligations and Assurance) Act 2021 strengthened this duty
- Conduct an annual member outcomes assessment — comparing their MySuper product against alternatives and benchmarking member outcomes
- Publish a business performance review explaining how the product serves member interests
- Meet the scale test — demonstrate that the fund is of sufficient scale to serve members efficiently (small funds must justify their continued independent operation)
- Comply with the Retirement Income Covenant — from 2022, trustees must formulate a retirement income strategy for members approaching and in retirement
What Isn’t Regulated Under MySuper
- Investment performance — APRA can test and notify, but cannot dictate investment strategy
- Investment returns — past returns are monitored but APRA cannot guarantee or mandate returns
- Individual member outcomes — APRA focuses on systemic fund-level outcomes, not individual complaints (these go to AFCA)
- Choice (non-MySuper) products — while APRA regulates fund trustees generally, the specific MySuper performance test and fee cap rules only apply to MySuper products
Who Can Members Complain To?
- APRA: For systemic concerns about fund governance and safety (not for individual disputes)
- AFCA (Australian Financial Complaints Authority): For individual disputes — unpaid benefits, insurance claims, fund errors
- ASIC: For consumer protection matters relating to advice or misleading conduct
- ATO: For SG non-payment by employers
For more: MySuper Explained, APRA Heatmap, Your Future, Your Super Reforms. For advice on your super, speak with a licensed financial adviser via MoneySmart.