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Fee types
Every super fee type — and what it actually is
The real issue
Super fees are deducted before you see your balance — silently, every year. A fund charging 1.5% in total fees vs one charging 0.5% will cost you an additional $100,000+ on a median balance over a 30-year working life, due to compounding. This is not a small difference. The Productivity Commission found that fund selection has more impact on retirement outcomes than any other factor other than contribution rate.
~$100k
Lost to a 1% fee difference on $100k over 30 years
This figure compounds annually — the more your balance grows, the larger the dollar cost of each 1% fee. A 35-year-old with $80,000 in a 1.2% fee fund vs a 0.5% fund will retire with approximately $80,000–$120,000 less, depending on contributions and returns.
| Fee type | How it's charged | Typical range |
|---|---|---|
| Administration fee | Flat dollar amount per year or per month, regardless of balance | $50–$500 p.a. — flat fees disproportionately harm small balances |
| Investment (management) fee | Percentage of your balance — largest and most impactful fee | 0.1%–1.5% p.a. depending on investment option and fund type |
| Indirect cost ratio (ICR) | Costs deducted from fund assets before unit prices are calculated — you don't see them directly | 0.05%–0.5% p.a. — disclosed in the PDS |
| Insurance premium | Deducted from your super balance — default cover is often included. Can be significant if unrequested. | Varies widely by age, cover type, and fund |
| Buy/sell spread | Charged when you switch investment options — difference between buy and sell unit price | 0.1%–0.3% per switch |
| Exit fee | Previously common — now banned under Protecting Your Super legislation (2019) | $0 — any fund still charging an exit fee is in breach |
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Find your fees
Where your fees are disclosed — and how to read them
| Document / source | What it shows | Where to find it |
|---|---|---|
| Annual super statement | Total fees deducted in dollar terms for the year — the clearest single number | Posted or emailed by your fund each year, or in your member portal |
| Product Disclosure Statement (PDS) | Full fee schedule including administration, investment, and ICR — expressed as percentages and dollar examples | Your fund's website under "Documents" or "How we invest" |
| ATO YourSuper comparison tool | Side-by-side fee and return comparison across all MySuper products | ato.gov.au/yoursuper — also accessible via myGov |
| Member online portal | Current balance, investment option, insurance cover, and often a fee breakdown | Log in via your fund's website |
The key number: total annual fee as a percentage of balance. Add your administration fee (converted to % of your balance) + investment fee + ICR. This is your effective fee rate. Compare this to the benchmarks in Section 3. If your fund sends you an underperformance notice under APRA's annual performance test, that is a regulatory signal — not marketing — and it should prompt you to compare alternatives.
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Benchmarks
What's fair — fee benchmarks by fund type
Fees must always be considered alongside returns. A fund with slightly higher fees but consistently better net returns may deliver better outcomes than a low-fee fund with poor performance. Use net returns (after fees and tax) as your primary comparison metric, with fees as a secondary check.
| Fund type | Typical fee range (total) | What to expect |
|---|---|---|
| Industry / not-for-profit fund (balanced option) | 0.5%–0.85% p.a. | Generally lowest fees due to industry-member ownership structure. Basis for most comparisons. |
| Retail fund (balanced option) | 0.8%–1.8% p.a. | Wider range — some retail funds are competitive, others carry high margins. Check net returns not just fees. |
| SMSF (self-managed, under $500k) | Often 1.5%–3%+ in effective costs | SMSFs become cost-competitive above approximately $500k in assets. Below this, usually more expensive than industry funds. |
| Index / passive option (within any fund) | 0.1%–0.3% p.a. | Lowest-cost option within most funds. Appropriate for members who want market returns without active management costs. |
If your fund has been flagged as underperforming by APRA: The fund must notify you and cannot accept new employer contributions into the flagged product. This is a legally mandated warning — treat it as a genuine signal to compare alternatives via YourSuper.
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Switching
When switching makes sense — and what to check before you do
| Check before switching | Why it matters |
|---|---|
| Insurance cover | Your current fund may include default death, TPD, and income protection cover. Switching to a new fund restarts the insurance assessment — you may lose existing cover or face exclusions for pre-existing conditions. |
| Defined benefit component | Some older funds (particularly public sector) include a defined benefit component that cannot be replicated in a standard fund. Get advice before leaving a fund with a defined benefit. |
| Consolidation of multiple accounts | If you have multiple super accounts (common if you've changed jobs), consolidating saves on duplicate fees. Use myGov / ATO to find all accounts first. |
| Net returns over 5–10 years | A one-year return comparison is meaningless. Compare 5-year and 10-year net returns (after fees and tax) on the YourSuper tool or Chant West / SuperRatings. |
| How to switch | Log into your new fund's member portal or myGov. For most funds, the entire switch can be done online in under 10 minutes. No need to contact the old fund directly. |
ATO YourSuper comparison tool: ato.gov.au/yoursuper — compares all MySuper (default) products on fees, net returns, and APRA performance test outcomes. Also accessible via myGov. The single best starting point for any super fee comparison.