Fees, Comparisons and 2026 Rules
APRA's annual super performance test explained: what a fail means and what to do
How APRA's annual superannuation performance test works for MySuper and trustee-directed products, what the 2026 results show, and the steps to take if your product fails.
The annual performance test is a yearly check by the Australian Prudential Regulation Authority (APRA) of whether super products have delivered acceptable returns after fees. Each tested product's actual net investment return over a long period is compared with a tailored benchmark based on its own asset mix, and its administration fees are compared with a benchmark too. If a product falls short by more than 0.5 percentage points a year, it fails. The fund must then write to members, and a product that fails two years in a row cannot accept new members until it passes again. The test covers MySuper products and many trustee-directed products. A fail is a strong signal to review your product, not an automatic instruction to leave.
This guide is part of the super fund fees overview. It explains the test in general terms; for the exact methodology and current results see APRA. General information only, not financial advice.
Where the test comes from
The test was introduced by the Your Future, Your Super reforms, with the rules set out in the Superannuation Industry (Supervision) Act 1993 and its regulations. The first test of MySuper products was carried out in 2021. From 2023, APRA has also tested trustee-directed products (TDPs): multi-sector options where the trustee or a connected entity controls the investment strategy, including many choice options outside MySuper.
According to APRA's results page, the 2026 test (released in August 2026) assessed 50 MySuper products, of which 49 passed and one failed for the first time, with no repeat failures. APRA also assessed several hundred non-platform and platform trustee-directed products in the fourth year of TDP testing. Check APRA's site for the product names and the TDP results.
How the test works in outline
| Element | In plain English |
|---|---|
| Actual return | The product's net investment return (after investment fees, costs and taxes) over the test period, generally the last 10 years |
| Benchmark return | What the product would have earned if each part of its asset mix had earned a market index return, adjusted for typical costs and taxes |
| Administration fees | The product's administration fees compared with a benchmark based on the median of tested products |
| Threshold | A product fails if the combined measure is more than 0.50% a year below the benchmark |
Because the benchmark is built from the product's own strategy, the test asks "did this product do well for what it was trying to do?" — not "did it beat other funds?". A conservative product is not failed simply for earning less than a growth product.
What happens when a product fails
- APRA publishes the result, and the product shows as failed on the ATO's YourSuper comparison tool.
- The fund must write to members in the failed product within 28 days of APRA's notification (unless APRA or ASIC allows a later date), by letter and, where the fund has an email address for them, electronically, telling them the product failed and pointing them to YourSuper.
- A second consecutive fail means the product is closed to new members until it passes a later test. Existing members are not moved automatically; they must decide for themselves.
- APRA supervises the trustee more closely, and failures can lead to mergers or product closures.
What to do if your product fails: a checklist
- Confirm which product failed. Is it the option your money is actually in? A fund can have one failed product and others that passed.
- Look at the gap. How far below the benchmark, and over what period? APRA publishes the figures.
- Check fees in dollars. Use the annual super fee calculator on your balance for your product and an alternative.
- Compare net returns of similar MySuper products on YourSuper over the long term.
- List your insurance. Moving funds usually ends existing cover; see insurance inside super.
- Check employer arrangements. Some employers pay more than the 12% super guarantee into a particular fund.
- Read what the fund says it is doing. Funds often announce fee cuts, investment changes or a merger after a fail.
- Decide and act deliberately. If you switch, follow the switch or consolidate checklist.
Worked example: what underperformance costs
Illustrative only: a member has $90,000 in a product that has earned about 0.6 percentage points a year less than a similar product with a comparable strategy. Using the fee drag projection with $600 a month of contributions after tax over 25 years:
- at 6.0% a year: about $818,000
- at 5.4% a year: about $726,000
- illustrative difference: about $92,000
The figures assume steady returns, which never happens in reality, and past underperformance does not guarantee future underperformance. But the example shows why a persistent gap of half a percentage point matters.
Limits of the test
The test is useful but narrow. It does not measure:
- the quality or cost of insurance;
- member services, apps, retirement income products or advice;
- whether a product's strategy suits you — a high-growth product may pass yet be too risky for someone retiring next year;
- products it does not cover, such as self-managed super funds, defined benefit interests and some other choice products.
A pass is not a recommendation. Use it alongside fees, long-term net returns, insurance and your own needs, as set out in the fund comparison checklist.
The test uses net returns, so investment costs are already counted; see investment fees and indirect costs to understand what sits behind those returns.
Frequently asked questions
Will I be moved automatically if my product fails?
No. Existing members stay unless they choose to move or the trustee merges or transfers the product under the usual legal rules. A second consecutive fail stops new members joining.
Does a pass mean the product is cheap?
No. A product can pass the test with fees higher than many others if its returns kept it within the threshold. Compare fees separately.
When are results released?
APRA has released recent results around August each year. Check APRA's performance test page for the current year.
Is my self-managed super fund tested?
No. The test applies to APRA-regulated products such as MySuper and trustee-directed products, not SMSFs.
Official sources
- APRA — annual superannuation performance test results, methodology and FAQs
- ATO — YourSuper — test status shown for MySuper products
- Federal Register of Legislation — Superannuation Industry (Supervision) Act 1993 and regulations
- Moneysmart — what to do if your fund underperforms
