How to Switch From MySuper to a Choice Option

Moving from your fund’s default MySuper option to a choice investment option — either within the same fund or at a different fund — is straightforward. Before switching, it’s worth understanding what you’re changing and why.

Why People Switch From MySuper

The most common reasons members move from a MySuper default to a choice option:

• Index (passive) investing: Want to invest in low-cost index funds instead of actively managed options
• Ethical/ESG investing: Prefer a portfolio with environmental or social screens
• More growth exposure: Default balanced option is too conservative for their time horizon
• More defensive exposure: Approaching retirement and want lower volatility
• Sector exposure: Want Australian shares, international shares, or infrastructure as separate allocations

How to Switch Within the Same Fund

Most large funds allow you to change your investment option online:

1. Log in to your fund’s online portal or app
2. Go to “Investments” or “Investment options”
3. Select the option(s) you want
4. Confirm the switch

The change typically applies to:

• Future contributions: Usually changes immediately
• Existing balance: May take 1–5 business days depending on the fund’s redemption and purchase cycle

Some switches (particularly into or out of illiquid options) may have longer processing times.

What to Consider Before Switching

1. Does the choice option suit your time horizon?

A MySuper default balanced option (~70% growth) suits most accumulation-phase members. If you’re moving to a more aggressive option (high-growth, 100% equities), ensure you’re comfortable with potentially larger short-term losses.

2. Are the fees lower or higher?

Choice options within the same fund may have different investment fees. Indexed options are typically cheaper than actively managed ones. Compare the investment fee or indirect cost ratio (ICR) for the option you’re considering.

3. Does insurance stay the same?

If you’re switching investment options within the same fund, your insurance cover is unaffected. Insurance only changes when you move to a different fund.

4. Can you handle more complexity?

Some choice options require periodic rebalancing or attention — for example, if you hold a mix of separate sector options, you may need to periodically adjust the mix. A single balanced or growth option is lower maintenance.

How to Switch to a Different Fund Entirely

If you want a choice product at a different fund:

1. Choose your new fund
2. Submit the Standard Choice of Fund form (ATO form NAT 13080) to your employer (if still employed) — or roll your balance directly via myGov
3. Roll over your existing balance to the new fund (check insurance first)
4. Notify your employer to direct future SG to the new fund

See Super Rollover Guide.

Popular Choice Options Within Major Funds

Frequently Asked Questions

Can I hold multiple investment options within one fund? Yes — most funds allow you to split your balance and future contributions across multiple options. For example, 70% in Balanced and 30% in Indexed Australian Shares.

Does switching affect my existing balance or just future contributions? Most funds apply the switch to both your existing balance and future contributions, unless you specify otherwise.

Is there a switching fee? Most MySuper and choice options no longer charge switching fees — exit fees were prohibited from 2019. However, some older products may retain switching fees; check your PDS.

Can my employer override my choice of investment option within their default fund? No — once you are employed, you can choose any complying super fund, and the employer cannot override your investment option selection within a fund you’ve chosen. However, your employer’s SG obligations must be paid to a complying fund — if you’ve nominated a fund that is later decertified, your employer would need to redirect contributions. Within a fund, the investment option is entirely your choice as a member.

What if I want to switch to a choice option but my current fund’s options are limited or poor? You are not restricted to investment options within your current fund. You can transfer your entire balance to a different fund that offers the option you want — such as an indexed fund, an ethical super fund, or a fund with a broader investment menu. Before transferring, compare fees, insurance implications, and whether your new fund’s options are better suited to your needs.

How long does it take for an investment option switch to be processed? For liquid options (most standard investment options), most funds process switches within 1–5 business days. The practical delay comes from the unit pricing cycle — your existing units are redeemed at the next available unit price, and new units are purchased at the following price. Some funds with unlisted assets (infrastructure, property) may take longer to switch out of due to valuation periods. Check your fund’s PDS or contact the fund directly.

Will switching investment options within the same fund trigger a capital gains tax event? No — switching investment options within an APRA-regulated super fund does not trigger a CGT event for the member. The fund sells and buys underlying assets when you switch, and any capital gains within the fund are managed within the super tax environment (concessional tax rates apply). You do not personally realise a gain or loss when switching options within a super account.

If I switch from MySuper to a choice option, can I switch back later? Yes — you can move back to the MySuper (default) option at any time, subject to any switching restrictions your fund may have. Most funds allow unlimited switches between options. Some funds may require that future employer contributions also be redirected if you return to the MySuper option. Check your fund’s rules.

I’m planning to retire in 2–3 years. Should I switch my investment option? This is a personal decision that depends on your balance, other assets, income needs, and risk tolerance. Switching to a more defensive option near retirement reduces exposure to a market downturn in the final years before retirement (sequencing risk), but also reduces growth potential. Many people approaching retirement keep a balanced allocation and adjust further into retirement rather than de-risking aggressively years in advance. A licensed financial adviser can model your specific situation. See Sequencing Risk.

For more: MySuper, Investment Options in Super, Indexed Super Funds, How to Choose a Super Fund. For advice on which option suits you, speak with a licensed financial adviser via MoneySmart.