Super fund fees are one of the most significant drags on long-term superannuation returns in Australia. The Australian Securities and Investments Commission (ASIC) estimates that reducing super fees by just 1% can add approximately $100,000 to a retirement balance over a 30-year working life. In 2026, the super fund market is more competitive than ever — here is how to assess whether your fund's fees are high, medium, or low, and what to do if they are not competitive.

Types of Super Fund Fees

  • Administration fee: Fixed dollar fee charged by the fund to cover administration costs — typically $50-$120 per year for industry funds; higher for some retail funds
  • Investment fee: Percentage of your balance charged annually for managing your investments — typically 0.5-1.5% p.a. for balanced options
  • Indirect cost ratio (ICR): Costs within the underlying investment vehicles (not charged directly but deducted from returns)
  • Switching fee: Some funds charge to move between investment options — less common in industry funds
  • Advice fee: For intra-fund financial advice (now typically included in administration fees)

Super Fee Benchmarks in 2026

As a guide to what is competitive in 2026 for a balanced (growth) option on a $50,000 balance:

  • Low: Total fees below 0.7% p.a. (below $350/year on $50,000) — typically achieved by leading industry funds
  • Medium: Total fees 0.7-1.2% p.a. ($350-$600/year on $50,000) — competitive retail and industry fund range
  • High: Total fees above 1.2% p.a. (above $600/year on $50,000) — requires strong performance justification

How to Find and Compare Your Super Fees

  • Check your annual super statement — fees are disclosed in the "fees and costs" section
  • Visit the ATO's YourSuper Comparison Tool (ato.gov.au/yoursuper) — mandated product dashboard for MySuper products
  • Compare your fund against the top-performing funds on APRA's Fund-level Superannuation Statistics
  • Look at net returns (after fees) not just fees alone — a slightly higher-fee fund with significantly better performance can still be superior

APRA's Underperformance Test

Since 2021, APRA applies an annual performance test to MySuper products. Funds that underperform the benchmark by more than 0.5% for two consecutive years are required to notify members and are prohibited from accepting new members if they fail for a second consecutive year. Check whether your fund has passed the 2025 performance test on APRA's website.

Frequently Asked Questions

Should I consolidate my super funds?

If you have multiple super accounts, consolidating into one fund eliminates duplicate administration fees and simplifies management. Before consolidating, check whether any fund provides insurance cover (life, TPD, income protection) that would be lost upon exit. Consolidate through myGov or directly through your chosen fund's website.

Are super fund fees tax deductible?

Super fund fees are deducted from your super fund balance by the fund — they are not directly tax deductible on your personal tax return. However, because the fund pays them from its pre-tax earnings (which are taxed at only 15%), the effective cost is lower than paying the same fee from after-tax income.

How do I switch super funds?

You can switch super funds by: applying to join your new fund and providing your employer with the new fund's details (via a Standard Choice Form); or rolling over an existing balance by completing a rollover request through myGov linked to the ATO. Rollovers typically process within 3-5 business days for electronic transfers.

Not sure if your super fund is performing for you? Contact AWTS for a superannuation review and comparison.