MySuper

MySuper is Australia’s regulated default superannuation product framework for employees who do not choose a super fund or investment option. It was designed as a simple, comparable and cost-effective accumulation product, generally with a diversified investment strategy and standardised disclosure, within the compulsory retirement savings system overseen by Australian regulators.^[1][2]

Overview

MySuper is not a single government fund. It is a category of authorised superannuation product that may be offered by a registrable superannuation entity licensee. A member’s MySuper balance is held inside a superannuation fund, but the product must meet statutory characteristics and regulatory requirements before it can be offered as a MySuper product.^[3]

In practical terms, MySuper is the default investment destination for many Australian workers’ compulsory employer contributions. If a worker does not make an investment choice, their fund will generally place the money in its MySuper option.^[4] If a worker does not choose a super fund when starting employment, the employer must still pay superannuation contributions. Those contributions are generally directed to the worker’s existing “stapled” super fund, where one exists, or otherwise to the employer’s default fund.^[5]

The policy rationale was to improve outcomes for disengaged or less active members of the superannuation system. Before MySuper, default superannuation arrangements could vary widely in fees, investment design, insurance and disclosure. The MySuper reforms sought to make default products simpler, more transparent and easier to compare, while still allowing funds to compete on investment performance, administration and member services.^[2]

Policy origins and Stronger Super reforms

MySuper formed part of the Australian Government’s Stronger Super reforms, a broad reform program following reviews of the superannuation system. Treasury described the MySuper changes as aimed at providing a simple, cost-effective and balanced product for the large number of Australian workers invested in default options.^[1]

The government announced key design decisions for Stronger Super in the early 2010s. Treasury’s Stronger Super material described the creation of “a new simple, low cost default superannuation product” known as MySuper.^[6] Treasury also convened a MySuper working group to provide advice on the implementation of the policy, including issues such as fees, insurance, transition arrangements and disclosure.^[2]

The legislative framework was inserted into the Superannuation Industry (Supervision) Act 1993, commonly called the SIS Act. APRA’s historical explanation of the reform notes that the SIS Act was amended in November 2012 to require registrable superannuation entity licensees to seek APRA authorisation if they intended to offer a MySuper product.^[7]

From 1 January 2014, only funds offering a MySuper product have been eligible to receive default superannuation contributions for new employees.^[1] This date is significant because it made MySuper the core regulatory gateway for employer default superannuation arrangements.

Product characteristics

The SIS Act sets out statutory characteristics of a MySuper product. These include requirements dealing with the structure of the product, the treatment of members within the product, permitted investment strategy designs and fee rules.^[3] The framework is intended to limit complexity in the default product while allowing some differences between funds.

APRA describes MySuper products as default superannuation products with single, diversified investment strategies.^[8] In many cases, this means a diversified “balanced” style investment option holding a mix of growth assets and defensive assets. However, the law also allows lifecycle-style MySuper products, where the investment strategy changes for members in different age or cohort groups. APRA’s product performance data distinguishes between single-strategy and lifecycle products.^[8]

A MySuper product generally cannot be structured as a menu of member-directed investment options. That distinguishes it from choice products, where members may select options such as Australian shares, international shares, cash, property, indexed strategies, environmental or social options, or self-directed investment menus. MySuper is designed for members who have not made such an active investment choice.

The product is also intended to have simpler fee structures. The SIS Act limits the kinds of fees that may be charged in relation to a MySuper product.^[3] This does not mean that every MySuper product has the same total fee or that it is always the lowest-cost option in a fund. Rather, MySuper products operate under a regulated fee framework and are subject to comparison and performance reporting.

Default contributions and member choice

MySuper is closely connected with Australia’s employer superannuation guarantee system. Employers are required to make superannuation contributions for eligible employees, and those contributions must be paid into a complying superannuation fund. A member may choose a fund, but if they do not, default rules apply.

The myGov guidance for employees explains that if a person does not choose a super fund, their employer still pays super. Contributions are paid into the person’s existing stapled fund or, if there is no stapled fund, into the employer’s default fund.^[5] A stapled super fund is an existing super account linked to an employee, intended to follow them when they change jobs, reducing the creation of duplicate accounts.

Where a member joins a fund and does not choose an investment option, the fund commonly places the member into its MySuper default option.^[4] This makes MySuper important not only for employer default fund selection, but also for investment defaulting inside a fund.

Members are not required to remain in MySuper. They may choose another investment option within the same fund if available, choose another fund, consolidate accounts, or seek personal financial advice. MySuper is therefore a default setting within the superannuation system, not a compulsory investment option for every member.

Regulation and supervision

The Australian Prudential Regulation Authority is the primary prudential regulator for MySuper authorisation and ongoing supervision. APRA supervises superannuation entities and authorises trustees to offer MySuper products. APRA also publishes data on MySuper product performance, including returns, fees and performance-test metrics.^[8]

The Australian Securities and Investments Commission has an important conduct, disclosure and consumer-protection role in superannuation. ASIC’s consumer materials describe MySuper as a default super account that typically offers lower fees and simpler features so members do not pay for services they do not need.^[9] ASIC also administers parts of the financial services disclosure and advice regime applying to superannuation trustees and promoters.

The Australian Taxation Office is central to the member-facing administration of superannuation, including online services accessed through myGov. The ATO’s YourSuper comparison tool allows users to compare MySuper products using information on fees, net returns and annual performance.^[5]

The Australian Treasury is responsible for superannuation policy advice to the government. Treasury’s superannuation pages describe its role in advising on retirement income policy, including superannuation and the age pension.^[10]

Performance testing and transparency

A major feature of the modern MySuper framework is performance transparency. APRA publishes MySuper product performance information and maintains a product performance lookup tool. The tool allows users to compare investment returns, fees and performance-test metrics across MySuper products.^[8]

APRA is also required to conduct an annual superannuation performance test. The test applies to MySuper products and, following later reforms, to some other trustee-directed products. APRA’s 2026 performance-test page reported that, for MySuper products tested in August 2026, 50 products were assessed, 49 passed and one failed for the first time.^[11]

The performance test is not the same as a full ranking of funds. It assesses products against a benchmark methodology that considers investment performance and administration fees over a prescribed period. A product may pass the test without being the best-performing product, and a product may fail because it falls below the test’s benchmark. The test is nevertheless significant because failing products face regulatory consequences, including member notification requirements and restrictions on accepting new members after repeated failure.

APRA separately publishes annual MySuper statistics on individual products. These statistics are product-specific and are generally presented as at the financial year-end of the relevant superannuation fund.^[12] The publication of standardised product data reflects one of the original goals of MySuper: improving comparability for members, employers, analysts and policymakers.

Investment design

Most MySuper products use either a single diversified strategy or a lifecycle strategy. A single diversified strategy applies broadly the same strategic asset allocation to all members in the product, subject to normal portfolio management decisions. A lifecycle strategy changes investment exposure according to age or another cohort measure, usually reducing exposure to growth assets as members approach retirement.

The choice between single-strategy and lifecycle design is a trustee decision within the legal framework. APRA’s data identifies whether a MySuper product is single strategy or lifecycle and reports strategic growth asset allocation using a consistent definition for its analysis.^[8] This helps users understand that two products both labelled “MySuper” may still have different asset allocations and risk profiles.

Because MySuper is an accumulation product, investment returns are credited to members’ accounts after fees, taxes and other product-specific factors. Members bear investment risk, and their balances can rise or fall with financial markets. MySuper does not guarantee a retirement income; it is part of the accumulation phase of Australia’s retirement income system.

Fees, insurance and member services

Fees are a central feature of the MySuper framework. The original policy intent was to reduce unnecessary cost and improve comparability for default members. The SIS Act restricts the types of fees that may be charged in relation to a MySuper product.^[3] However, fee levels still vary between funds because administration arrangements, investment management, insurance and scale differ across providers.

Insurance is also relevant. Many MySuper members receive default insurance cover through their super fund, such as death, total and permanent disability, or income protection cover, depending on eligibility and fund rules. Insurance premiums reduce member balances, but cover may provide benefits in specified circumstances. The interaction between default investment, fees and insurance is therefore important when assessing member outcomes.

ASIC has examined default insurance in superannuation and member value for money, including MySuper products in its analysis.^[13] The existence of such regulatory work reflects the fact that MySuper is not only an investment product; it is also a default retirement savings arrangement that may include insurance and administration services.

Comparison with choice superannuation products

MySuper should be distinguished from choice superannuation products. A choice product or investment option is selected by a member rather than applied by default. Choice options may include higher-growth portfolios, conservative portfolios, sector-specific options, indexed options or direct investment options.

The ATO’s YourSuper comparison tool focuses on MySuper products.^[5] This means it is useful for comparing default products, but it does not necessarily compare every investment option available in the Australian superannuation market. A member comparing an actively chosen high-growth option, indexed option or self-managed structure will need other disclosures and data sources.

MySuper’s policy function is therefore narrower than the whole superannuation market. It creates a regulated default baseline for disengaged members and new employees who do not make active choices. It does not replace the wider market for choice superannuation products, self-managed superannuation funds or retirement income products.

Role in the Australian retirement system

MySuper occupies an important position in Australia’s retirement income architecture because the compulsory superannuation system covers a large workforce and many members do not actively select investment options. Default settings therefore influence long-term retirement balances for millions of workers.

The framework also affects competition among superannuation funds. Funds that want to receive default contributions need an authorised MySuper product, and their products are visible in regulatory performance publications. This creates pressure on trustees to consider net returns, fees, insurance design, administration quality and scale.

MySuper also interacts with broader reforms such as stapling, performance testing, enhanced disclosure and trustee obligations. Stapling seeks to reduce duplicate accounts; performance testing seeks to identify underperformance; and comparison tools seek to help members understand differences between products. Together, these measures make default superannuation more regulated and more data-driven than it was before the Stronger Super reforms.

Limitations and criticisms

The MySuper framework has limitations. A simple default product may be appropriate for disengaged members, but it cannot be tailored to every member’s age, income, risk tolerance, insurance need, retirement plan or ethical preference. Lifecycle products partly address age differences, but even they use broad cohorts rather than individual circumstances.

Comparability is also imperfect. Product labels can be similar while asset allocations, unlisted asset exposures, insurance arrangements and administration models differ. A single annual performance figure may not capture risk, liquidity, tax effects, long-term strategy or member services. The performance test provides a regulatory benchmark, but it is not a complete evaluation of all aspects of a product.

Another limitation is that MySuper comparisons usually exclude many choice products. A member who actively chooses an option within a fund may be outside the MySuper comparison framework. For this reason, MySuper is best understood as a regulated default segment of the superannuation market rather than a complete measure of the quality of a fund or the full range of retirement-saving choices.

See also

Related Financepedia entries include Superannuation (Australia), Australian Prudential Regulation Authority, Australian Securities and Investments Commission, Australian Treasury, AustralianSuper and Reserve Bank of Australia.