A headline return rarely shows what a product earns once fees and tax come out, which is why the best superannuation funds Australia has to offer can be hard to pick from a ranking. A fund that tops this year’s table can look ordinary beside its five-year record, so the sensible way to find the best superannuation funds Australia offers is to compare like with like.
This guide covers net returns, fees, the APRA performance test, investment options and insurance, then when it makes sense to switch.
Net returns across the best superannuation funds australia
Super is a long game, so a five-to-10-year record says far more than last year’s result. One strong year can be luck, and an exceptional result may last a year or less. Put any short-term figure next to the longer record before it persuades you of anything.
Two returns only compare if they cover the same period and are reported the same way. Some funds report after certain fees and taxes, others before, so two numbers that look alike can describe different things.
The gap is worth the effort. The Productivity Commission found that a person in a top-quartile MySuper product would have $660,000 more at retirement than a person in a bottom-quartile one, measured across a whole working life. Top quartile means the top quarter of funds ranked by performance.
Returns are only half the picture, so look at what each fund charges as well.
Fee structures across australian superannuation funds
A higher fee doesn’t buy a better fund by itself. The Productivity Commission found that higher fees were associated with lower returns, so ask what the extra cost is paying for before you accept it.
Each MySuper product dashboard shows fees for a $50,000 balance, which may be nothing like yours. Many funds have calculators that work from your own balance, and that figure is the one to use.
As a rough guide, one per cent of your balance is where the questions should start. If your fees sit above it, ask whether returns or service earn the difference. Also check what the fee covers: APRA’s total-fee measure counts administration charges, investment charges and the indirect cost ratio, and a comparison that leaves one out isn’t a fair one.
APRA performance test for superannuation funds australia
The APRA performance test measures super products against a benchmark, using net investment returns, which means returns after investment-related fees, costs and taxes. APRA first ran it for MySuper products in 2021 and has since widened it to other trustee-directed products. A product that fails has to tell its members.
The government’s YourSuper comparison tool, which started in 2021, sits next to the test and lets you compare MySuper products on fees and returns. A pass tells you a product beat its benchmark, not that it suits your balance, your age or your insurance needs, so use the test and the tool together.
Compare super investment options by risk and values
Your age helps set the risk level that may suit your super, so match the broad categories below to how long you have before you need the money.
| Risk category | Investment mix | Returns in the long term |
|---|---|---|
| Conservative | Mostly or all cash | Varies |
| Balanced | Shares, fixed interest and other asset classes, such as property, infrastructure and cash | Varies |
| High risk/high growth | Mostly or all shares | Varies |
SuperGuide reports that Growth options (61–80% growth assets) delivered a median return of 7.7% a year over the 10 years to June 2026, based on Chant West data. That is a median across funds, not a promise, and returns for other options differ.
If retirement is still far off, a higher-growth option can make sense even with market swings, because you have time to wait them out. If you plan to use your savings soon, the conservative option may cushion a sudden fall in markets.
Values matter here too, but be careful with claims that ethical super funds beat their peers. Look at what was compared first: many of those lists mix in large mainstream funds that have no ethical certification, which weakens the claim.
Weigh each option on your shortlist against its peers for performance and fees, then look at what the fund actually invests in and decide whether that matches your values.
Insurance cover in an australian superannuation fund
Automatic group cover
Most funds offer life, total and permanent disability (TPD) and income protection cover. Life and TPD cover often starts automatically, without underwriting. The catch is that premiums come out of your super, so less stays invested for retirement.
Default life insurance
Since a 2020 law change, default insurance no longer starts automatically for new members under 25, or for small and inactive accounts, with an exception for people in dangerous jobs. If that applies to you and you want cover, write to your fund and ask for it.
Possible advantages
Cover through super can be easier to arrange, and for some people it costs less than a policy bought outside. Paying premiums from super can also be tax-effective, but how much depends on your situation, so ask your fund or an adviser.
Disadvantages
Premiums reduce your retirement balance, and the cover may still fall short of what you need. Trauma insurance usually isn’t available in super, and a benefit for your beneficiary isn’t guaranteed. Switch funds or stop contributing, and the cover may end.
Weigh the cover first. Whether you open or switch an account is a second question, because a move that saves a little in fees can cost you the cover you were relying on.
When to compare superannuation funds and switch
A fresh comparison is worth doing when you start a new job, when your fees feel too high, when you find a fund with a better record, or when old accounts have piled up. The steps below cover how to act on that.
- Open a new super account if you start a new job, want lower fees, or find a fund with a better investment record. If you already hold several accounts, the guide to consolidating super without losing cover shows what to check before you close any of them.
- Once the new account is open, you can generally roll money across from your other accounts. A move that looks cheaper can still cost you insurance cover, so for a complex switch speak to a financial adviser for superannuation first.
- Most funds let you join online. Find the join tool on the fund’s website and follow the prompts, and have your tax file number (TFN) handy. Your fund needs it to accept your contributions and to apply the tax rates that generally apply to them.
Comparator sites can help you shortlist, but check whether a site is paid by the funds it lists, because that payment can shape how those funds are displayed.
Frequently asked questions
How does superannuation work?
Superannuation is money saved in a fund and usually held for you until retirement (what is superannuation covers the basics). If you work in Australia and meet the Superannuation Guarantee requirements, your employer must pay a set percentage of your ordinary time earnings into a super fund on top of your salary, so it’s worth checking the right amount arrives. The ATO says investment income inside super is taxed concessionally. The money is generally kept until you retire, because super is meant to replace or top up the Age Pension.
What is the super guarantee rate?
The current super guarantee rate is 12%, in place since 1 July 2025. If it applies to you, your employer pays that percentage of your ordinary time earnings into your super fund on top of your salary. The current super rate guide covers how it is worked out.
Should I choose life insurance through my super fund?
It may suit you if you want cover without paperwork and don’t mind premiums coming out of your balance. An outside policy, or both, are the alternatives. How much cover you need, and how much retirement saving you would give up to pay for it, decides which is right.
Can I withdraw money from my super?
You may be able to reach your super early, but only under a few special conditions of release. If you’re temporarily or permanently unable to work, early access may be available, so check which condition applies to you. Severe financial or medical hardship can also qualify. Buying a first home goes through a separate scheme, the First Home Super Saver scheme, which covers only voluntary contributions, so ask before you count on it.
Can I pay into my super if I’m not working?
Yes. What you can add depends on your age, but you can generally make voluntary non-concessional contributions, and a cap limits how much you can pay each financial year before extra tax applies. If you earn a low income or aren’t working, your spouse can also contribute to your account, which helps build your balance.
Conclusion
The best superannuation funds Australia has to offer are the ones that hold up after fees and tax over years, not the ones at the top of this year’s table. So compare net returns over the same period, check what each fund charges, and see whether its investment options and insurance fit your age and your budget. A short list built on those checks will serve you better than any table.
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