The Australian superannuation system manages just over $4 trillion in member assets as at mid-2026. Total fees extracted from those assets through administration charges, investment management fees, and insurance premiums will run to approximately $35 billion in 2026. By global comparison, that is at the high end of developed-market super system fees relative to assets under management.
A meaningful share of those fees do nothing for member outcomes. The funds at the high end of the fee scale do not consistently outperform the funds at the low end. The annual performance test that APRA introduced in 2021 has weeded out the worst chronic underperformers, but plenty of high-fee mediocre performers remain in the market because the performance test threshold is calibrated lower than the real industry benchmark.
This piece names funds. It does so based on publicly available data from the YourSuper comparison tool, APRA Fund Performance reports, and SuperRatings independent ratings. Nothing here is a personal advice recommendation. Every reader's super decision depends on their own age, balance, risk profile, and circumstances. The named fees and performance figures are public information.
The fee benchmarks that actually matter
Three fee benchmarks separate competitive funds from fee-gouging funds in 2026:
- Total ongoing fee (administration plus investment) under 0.7 per cent of balance is genuinely competitive. Indexed investment options at large industry funds typically sit at this level or below.
- Total ongoing fee between 0.7 per cent and 1.0 per cent is the standard industry-fund balanced MySuper range. Most members are paying something in this band without thinking about it.
- Total ongoing fee above 1.2 per cent is enough to materially affect long-run returns. Compounded over 25 years against a 0.7 per cent fee, the difference is 12 to 15 per cent of final retirement balance.
- Total ongoing fee above 1.5 per cent is a structural problem that justifies switching funds regardless of performance considerations.
The benchmarks above apply to ongoing investment fees. Insurance premiums and additional fees on specific investment options can add 0.2 to 0.5 per cent on top depending on the member.
The funds at the consistent top of the YourSuper rankings
Across the past three years of YourSuper net return rankings, several funds have appeared consistently in the top quartile for their MySuper product:
- Hostplus Balanced: consistently strong net returns over rolling 7-year periods, total fees in the 0.85 per cent range, strong unlisted asset allocation.
- AustralianSuper Balanced: largest fund in Australia by member count, consistent top-quartile net returns, total fees in the 0.85 per cent range.
- Australian Retirement Trust (ART) Lifecycle: post-merger ART has delivered consistent net returns, lifecycle structure suits long-term wealth accumulation.
- REST Core: mid-size fund with consistent multi-year performance, fees in competitive industry-fund range.
- HESTA Balanced Growth: health and community services industry fund with strong responsible investment record and consistent net returns.
- UniSuper Balanced: open to the public since 2021, strong net returns, competitive fees.
- Cbus Growth: construction industry fund with strong performance and reasonable fees.
For members in any of these funds on the default balanced or growth MySuper option, no immediate action is required beyond the standard fee and insurance review.
The funds where the fees do not justify the returns
A different list. These are funds where total fees are at the high end of the industry benchmark and net returns over multi-year periods are not in the top quartile of the YourSuper rankings:
- BT Super for Life Lifestage MySuper: retail fund (Westpac-owned), fees at the upper end of the benchmark, net returns historically in the middle of the YourSuper rankings.
- OnePath Smart Choice Super MySuper Lifestage: retail fund (ANZ-owned through subsidiary), fees in the upper middle range, performance variable across the lifecycle options.
- MLC MySuper Balanced: retail fund (originally NAB-owned, now under IOOF/Insignia), fees competitive but performance has been inconsistent.
- Several specific corporate super arrangements where members are placed by their employer without making an active choice; the corporate plans frequently have higher fees than equivalent default industry funds.
- Some smaller industry funds in specific sectors where the asset base is sub-$5 billion and the fee load per member is structurally higher than at the larger funds.
For members in any of these funds, the practical question is whether to switch. The answer depends on the specific fund product, the member balance, and the consequences of any insurance arrangement attached to the existing fund. A member with a small balance and material insurance benefits attached may be better off staying; a member with a larger balance and no specific insurance dependency would typically benefit from switching to a top-quartile industry fund.
The specific fee gouging patterns
Three structural patterns where members are paying more than they need to:
First, members in chosen non-default investment options at retail funds. Retail fund product structures often charge materially higher fees on the chosen "growth" or "high growth" options than on the default lifecycle or MySuper option. A member who actively chose a higher-growth option at a retail fund may be paying 1.5 per cent or more total fees, against the same exposure available at 0.9 per cent at an industry fund.
Second, members in legacy retail fund products that have been closed to new members. These products are often called something like "Personal Super Plan" or "Retirement Income Plan" with a number after the name. Fees on closed legacy products are frequently higher than the current product range from the same fund because there is no competitive pressure on the closed product.
Third, members holding multiple super accounts unnecessarily. Each account carries its own administration fees and (where not specifically declined) its own insurance premiums. The ATO consolidation tool through myGov makes consolidating into one account straightforward; the typical fee saving is $200 to $600 per year per account closed.
What to do if your fund is on the wrong list
Three steps:
- Log into your myGov account and check your fund's YourSuper ranking on its MySuper product. If your fund has failed the annual performance test for any year, switch. If it has consistently been in the bottom half of the YourSuper rankings, seriously consider switching.
- Check your total fees at your actual balance. Not the published headline percentage, but the dollar amount you are paying per year. If it is above 1.2 per cent of balance, investigate. If above 1.5 per cent, switch.
- Review your insurance arrangements before switching. Default insurance at most super funds is set at a generic level that may not match your actual needs. Before switching, confirm what insurance you have, what you actually need, and whether your replacement fund offers equivalent cover at a reasonable premium.
Most members can complete all three steps in under 90 minutes of focused time. The financial impact of getting it right is meaningful (typically $100,000 to $250,000 of additional retirement capital over a 25-year accumulation period) and the consequences of getting it wrong (paying excess fees, mismatched insurance, dispersed accounts) are real.
Disclosure
Your Finance Guide does not receive any commission or referral fee from any super fund. Our broker partnership with ALG (ACL 505575) is for lending products, not super. The named funds in this piece are based on publicly available YourSuper rankings, APRA performance data, and SuperRatings ratings; nothing here is paid placement. The editorial position is that the consumer should compare their fund against the YourSuper benchmark and switch if material fee or performance gaps exist, regardless of brand familiarity or employer default arrangements.