Switching super funds is one of the easiest financial decisions to action in Australia — the process takes about 10 minutes online and is free. But the decision itself deserves careful thought, particularly around one often-overlooked issue: your insurance cover.
This guide covers the full switch process from start to finish.
Before You Switch — Three Things to Check
1. Is the New Fund Actually Better?
Switching is only worthwhile if the new fund offers a genuine improvement — lower fees, better long-run performance, a more suitable investment option, or better insurance. Don’t switch just for the sake of it.
Key metrics to compare:
- Total annual fee (for your balance size — see Super Fund Fees Comparison)
- 10-year net return in a comparable investment option (see Super Fund Performance Comparison)
- Insurance terms — death cover, TPD definition, income protection
The Best Super Funds Australia guide has a full comparison table.
2. Check Your Insurance in Your Current Fund
This is the most commonly missed step. When you close your current super account, any insurance attached to that account ends. You may lose:
- Life insurance (death cover)
- Total and permanent disability (TPD) cover
- Income protection
Before switching, confirm:
- What insurance cover you currently hold (log in to your fund or check your annual statement)
- Whether equivalent cover is available in the new fund
- Whether you have any pre-existing health conditions that might make obtaining new group insurance more complicated
If you’re unsure, contact your current fund’s member services line — they can explain your current cover. Similarly, contact the new fund to confirm what automatic cover you’ll receive when you join.
3. Are You in a Defined Benefit Fund?
If part of your super is in a defined benefit scheme (common in some government and public sector employment), do not roll it over without specialist advice. The defined benefit entitlement — calculated by a formula based on salary and years of service — is typically worth significantly more than the current transfer value. Rolling out is permanent and often irreversible.
If you’re not sure whether you have a defined benefit component, check your annual super statement — it will be clearly labelled.
Step-by-Step: How to Switch Super Funds
Step 1 — Open an Account With the New Fund
Before initiating a rollover, you must have an account open at the new fund.
Most major super funds allow online applications at their website — the process typically takes 5–10 minutes. You’ll need:
- Your tax file number (TFN)
- Identity documents (typically driver’s licence or passport, linked to your TFN via the fund’s verification system)
- An email address and mobile number
Once your account is open, the fund will send you a member number and account details.
Step 2 — Choose Your Investment Option in the New Fund
When joining, you can specify which investment option you want. If you don’t make a choice, your money will go into the fund’s default MySuper option.
Consider which option suits your age and risk tolerance — see Super Fund Investment Options Explained for guidance.
Step 3 — Initiate the Rollover
Option A — Via myGov (Fastest)
- Log in to my.gov.au and navigate to the ATO portal
- Go to Super → Manage → Transfer super
- Select your old fund(s) as the source
- Select your new fund as the destination
- Confirm the transfer
The ATO sends an electronic rollover request to your old fund. Processing typically takes 3–5 business days.
Option B — Via the New Fund
Most funds allow you to initiate the rollover directly through their website or app after joining. Log in to your new fund account and look for a “Consolidate super” or “Roll in” option. The new fund contacts the old fund on your behalf.
Option C — Via the Old Fund
Contact your old fund directly and request a rollover to the new fund. Provide your new fund’s details (fund name, ABN, USI/SPIN, your member number). The old fund processes the transfer.
Step 4 — Notify Your Employer
Your employer’s SG contributions must go to your chosen fund. After opening your new account, provide your employer’s payroll team with:
- The new fund’s name
- The fund’s ABN
- The fund’s USI (Unique Superannuation Identifier) or SPIN
- Your member number at the new fund
Under the Superannuation Guarantee rules, your employer must direct future contributions to your nominated fund. Note: under the stapling rules (in effect since 1 November 2021), if you join a new employer in the future, they must check the ATO’s stapling system before defaulting you into their fund — contributions may automatically go to your most recently active fund.
Step 5 — Confirm Everything Has Transferred
Within 1–2 weeks of initiating the rollover:
- Check your new fund account — the rolled-over balance should appear
- Check your old fund account — balance should be zero (or account closed)
- Check your new fund’s investment option — confirm you’re in the option you intended
If you haven’t received confirmation after 30 days, contact both funds. You can also check the status through the ATO portal on myGov.
What Happens to Contributions During the Switch?
During the switch period, there may be a brief gap where:
- Old fund: account is closing
- New fund: rollover not yet received
SG contributions from your employer may still be directed to the old fund during this period if you haven’t yet notified payroll. That’s fine — notify payroll as soon as your new account is open, and any contributions landing in the old account can usually be rolled over once received.
How Long Does Switching Super Take?
| Method | Typical Processing Time |
|---|---|
| myGov ATO portal | 3–5 business days |
| New fund’s rollover facility | 5–10 business days |
| Paper form via old fund | 2–4 weeks |
Delays can occur if the old fund requires additional identity verification or if the transfer is large (some funds take longer for large balance rollovers).
Is There a Cost to Switch?
No fee is charged for rolling over your super between complying funds. However:
- A small buy/sell spread (typically 0.05–0.20% of the transfer amount) may apply when selling out of your old fund’s investment option
- Your old fund may have an exit fee for accounts opened before 1 July 2019 (exit fees were banned from that date for accounts opened after, but some grandfathered arrangements may apply — check your PDS)
Frequently Asked Questions
Can my employer refuse to send contributions to my chosen fund? No. Under the Superannuation Guarantee rules, you have the right to nominate any complying super fund, and your employer must comply. If your employer refuses, this is a breach of the SG rules — you can report it to the ATO.
Will switching affect my concessional contributions cap? No. Rolling over super is not a contribution — it is a transfer of existing super. The transfer amount does not count toward your annual concessional or non-concessional cap.
What happens if my old super account has a $0 balance but isn’t closed? Some funds keep accounts open at $0 until you formally request closure. Contact the old fund and ask them to close the account in writing. This prevents any stray contributions or insurance premiums from reopening it.
Can I switch back to my old fund after switching? Yes — switching super funds is not permanent. You can switch back at any time, subject to the same process. However, if you closed an account and had insurance in it, that cover will not be reinstated automatically if you re-open an account — you would need to apply for new cover.
Do I need a financial adviser to switch super funds? No. Switching super funds is a self-service process you can complete online without advice. However, if your situation involves defined benefits, complex insurance arrangements, or you’re close to retirement, speaking with a licensed financial adviser before switching is worthwhile.
For advice tailored to your situation, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.