Who Regulates Superannuation in Australia?

Regulation Bodies of Super in Australia

In June 2017, there were around 600,000 superannuation funds operating in Australia, the vast majority (596,516) of which were self-managed super funds (SMSFs). Those funds manage a combined total of more than $2.3 trillion in assets, helping Australians of all ages save for their retirement.

All of those super funds operate under regulations devised by two Acts of Parliament – the Superannuation Industry (Supervision) Act 1993 and the Financial Services Reform Act 2002. Employer contributions made to their employee's superannuation fund are regulated by the Superannuation Guarantee (Administration) Act 1992.

AustralianSuper - Pre-mixed Balanced Super Fund Offer

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AustralianSuper - Pre-mixed Balanced Super Fund Offer

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*To June 2019, according to Chant West. Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns.

Choosing a super fund

Superannuation is designed to ensure that you can live out your retirement years in comfort. With regular super contributions from your employer, and perhaps some of your own voluntary contributions to further boost your balance, you can build a large nest egg to help you enjoy a secure retirement. You can also enjoy a range of tax benefits along the way and the peace of mind that comes with holding insurance cover through super.

However, before choosing a super fund, make sure you compare a range of superannuation providers to find the fund that offers the best mix of account features, investment options and affordability for your needs.

Name Product Past Performance - 1 Year Past Performance - 3 Years Past 5 year performance Calculated fees on $50,000 balance
The Balanced option is a pre-mixed, MySuper fund that invests in a diversified range of asset classes.
AustralianSuper is an award-winning industry super fund and is the largest super fund in Australia.
The Lifecycle Balanced option is a MySuper product that invests your super in a balanced fund until you’re near retirement.
Earn a Retirement Bonus of up to $4,800 when you open a new Income account. T&Cs apply.
The Lifetime option is a MySuper product that adjusts your investment mix each 7-10 years as you get older.
QSuper is a member-owned super fund and is one of the largest super funds in Australia.
The Lifestage Tracker is a MySuper product that invests in a range of asset classes in line with your age.
Earn Velocity Frequent Flyer Points for making contributions to your super. T&Cs apply.
The LGIA MySuper Lifecycle option aims for higher returns while you’re under 75.
LGIA is a medium-sized, member-owned super fund open to all Australians.
The LifetimeOne investment option is a MySuper product that changes your investment mix as you get older.
A Catholic super fund open to all Australians and designed for people working in Catholic education, healthcare or aged care.
New Fund
New Fund
New Fund
The Balanced Essentials fund invests in a range of shares, residential property and other assets and has a medium level of risk.
Superestate focuses on investing your super in physical residential properties and charges some of the lowest annual fees in the market.
This MySuper product will invest your super in a pre-mixed Growth fund until you’re 60, then it’ll switch to Balanced.
First State Super is a not-for-profit super fund with more than 750,000 members around Australia.
The Core Pool invests in a mix of asset classes and is an authorised MySuper product.
HESTA is an industry super fund open to all Australians and designed for employees in the health and community services sector.
The MySuper Lifestage fund invests your super in a mix of asset classes depending on how old you are.
Westpac Group customers can manage their super alongside their day-to-day bank accounts.
The Growth fund is a pre-mixed investment portfolio and an approved MySuper product.
Cbus is a leading industry super fund for the building and construction industry, that’s open to all Australians.
The MySuper Balanced Growth option is a ready-made, diversified fund with a medium level of risk.
BUSSQ is an industry fund designed for the building and construction industry and open for all Australians.
The Lifestage Fund readjusts your investment mix every few years to reduce your level of risk as you get older.
A retail super fund that offers access to personalised financial planning and advice.
The Balanced fund invests your super in a range of assets and is designed for high long-term growth.
An industry super fund open to all Australians with a focus on the hospitality and retail sector.
The Balanced option is a MySuper product that invests in a range of asset classes aiming for medium to high long-term returns.
MTAA is a national super fund available to all Australians with a focus on the motor trades and automotive sector.
The Growth option is a diversified portfolio that aims for high growth over the medium to long term.
MLC is a large retail fund open to all Australians. MLC is the wealth management arm of National Australia Bank.
The Core Strategy is a diversified investment portfolio that balances risk and return, and is an authorised MySuper product.
REST is an industry super fund tailored towards the retail sector and open to all Australians with almost two million members.
The Balanced option is a MySuper product that invests in a mix of growth and defensive assets.
A flexible industry super fund for people who work in Australia’s higher education and research sector.

Compare up to 4 providers

The information in the table is based on data provided by Chant West Pty Ltd (AFSL 255320) which is itself supplied by third parties. While such information is believed to be accurate, Chant West does not accept responsibility for any inaccuracy in such information. Chant West’s Financial Services Guide is available at https://www.chantwest.com.au/financial-services-guide . Finder offers no guarantees or warranties about the data and we recommend that users make their own enquiries before relying on this information. Performance, fees and insurance data is based on each fund's default MySuper product. Where the performance, fees and insurance data for the MySuper fund vary according to the member's age, results for individuals between 40-49 years of age have been shown. Past performance is not a reliable indicator of future performance.

*Past performance data is for the period ending December 2018.

Super fund or SMSF?

SMSFs, or self-managed super funds, are an alternative vehicle allowing Australians to save towards their retirement. Rather than signing up to an existing super fund and having your savings invested on your behalf, you and up to three other individuals can choose to set up your own retirement savings fund, in which you have control over your own investment decisions and assets.

There are costs associated with setting up and running an SMSF, so it's important to consider whether this type of structure is right for you. For an in-depth look at the steps and considerations involved in setting one up, consult our ultimate guide to SMSFs.

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The five regulatory bodies governing super in Australia

There are five separate bodies that supervise Australian super funds to ensure that they comply with the relevant legislation. These regulatory bodies are:

1. The Superannuation Complaints Tribunal (SCT)

The SCT operates under the auspices of the Superannuation (Resolution of Complaints) Act 1993. This Act outlines the process for dealing with any complaints about superannuation.

An independent dispute resolution body, the SCT offers a free and easily accessible alternative to the court system. It can deal with complaints about the decision and conduct of:

  • The trustees of a regulated superannuation fund
  • People acting on the trustee's behalf
  • Insurers in relation to insurance policies provided through super funds

The SCT formally reviews complaints and can then provide a remedy to any adverse impact you have suffered.

2. The Australian Taxation Office (ATO)

The ATO is charged with ensuring that SMSFs comply with all the necessary rules and regulations. It also has the responsibility of ensuring the correct taxation is applied to all superannuation savings held in those funds.

3. The Australian Securities and Investments Commission (ASIC)

ASIC's role is to protect consumer rights in the financial services sector, including superannuation. It enforces the Corporations Act 2001 which regulates the conduct and disclosure obligations of superannuation trustees to their fund members.

4. The Australian Prudential Regulation Authority (APRA)

APRA is charged with supervising regulated superannuation funds (other than SMSFs). It reviews each fund's compliance with the Superannuation Industry (Supervision) Act 1993 (Cth), ensuring that those funds are prudently managed at all times.

5. The Department of Human Services (DHS)

The DHS is responsible for the administration of applications from superannuation fund members for the early release of super on compassionate grounds.

Superannuation policy

The Australian Treasury’s policy advice on superannuation falls under three broad categories.

  • Retirement income policy. Treasury advises on retirement income policy, which includes the objectives, adequacy and overarching framework and design of Australia's superannuation system. It is also responsible for the modelling and analysis of government policy's impact on households as well as the financial consequences of demographic tendencies and the country's ageing population.
  • Prudential policy. The Australian Treasury works closely with APRA to advise the Australian Government on the prudential regulation of superannuation. APRA’s role is to make sure that trustees are aware to their responsibilities to members and that they manage funds in the best interests of those members.
  • Consumer Protection. Treasury also advises the Government about consumer protection for superannuation fund members. Treasury also works closely with ASIC, which promotes informed participation for consumers in the financial system, and oversees the Superannuation Complaints Tribunal.

The two acts of parliament overseeing superannuation in Australia

1. Superannuation Industry (Supervision) Act 1993

This is the key piece of legislation that outlines how superannuation funds can operate. It sets out:

Trustee responsibilities
  • To act honestly in all matters
  • To exercise the same degree of care, skill and diligence as an ordinary prudent person would exercise when investing money
  • To keep the fund's assets separate from other assets
  • To act in the best interests of fund members
  • To develop and implement an investment strategy
  • To ensure sufficient reserves to pay member’s benefits
  • To provide fund members with access to certain information
Record-keeping responsibilities
  • An accurate account or documentation should be provided at all times
  • Make sure that all accounts are accurate and properly noted
  • Keep records of meetings and agendas that have transpired among trustees
  • Lodge an annual return to APRA
  • Get the accounts and audited every year
Investment strategies

Under this category, the Superannuation Industry Act advises the trustee to consider:

  • The risks and returns of all investments after formulating the objectives and strategies of the funds
  • The mix of investments included in the fund's portfolio
  • The fund's cash flow requirements
  • The need for the fund to meet any current or potential future liabilities

2. The Financial Services Reform Act 2002

This Act has a broad scope and aims to provide the finance industry with a certain level of standardisation. It determines that a superannuation fund trustee must be licensed before being allowed to operate a fund. In short, the Financial Services Reform Act 2002 performs the following roles:

  • The provision for licensing of individuals who provide financial services or products, known as "dealers".
  • Establishes a standard of conduct for financial services providers, including what constitutes misconduct in regards to the management of superannuation funds.
  • Oversees training programs for agents who represent dealers.
  • Sets out the level of information that must be provided on financial products sent to fund members and prospective fund members.

Fund trustees must conform to strict rules

If you're a member of a superannuation fund, the fund's trustee is bound by law to always make decisions in the best interest of all fund members. He or she must always act prudently and honestly. Your fund trustee must have demonstrated to the appropriate regulatory body that he or she is a fit and proper person for the job.

There will be a trust deed that outlines the fund rules that the trustee must also comply with, as well as the above legislation. If the trustee fails to properly carry out his or her obligations in any way, they may be penalised or even removed from their office as trustee.

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4 Responses

  1. Default Gravatar
    Mellz10May 16, 2018

    My ex partner and father of our young child recently passed away, I would like to make a claim on behalf of our child for my ex partners superannuation and or death benefit to be placed in a trust for when my child is an adult. However I do not know what super find my ex partner was with? How can I go about making a claim for my child in this scenario? Or is it not possible?

    • Avatarfinder Customer Care
      JhezMay 16, 2018Staff

      Hello Mellz10,

      Thank you for your comment.

      You may need to contact Department of Human Services that handles the administration of applications from superannuation fund members. Another is check the statements from your ex partner’s stuff.


  2. Default Gravatar
    AngeloJune 10, 2017

    Please explain me and recommend what I need to do. My Company does not transfer the contribution to my Super account. I asked few times and they told me the Management will make decision whether Company would pay or not.

    • Avatarfinder Customer Care
      RenchJune 10, 2017Staff

      Hi Angelo,

      Thanks for reaching out to us.

      Your employer has to pay contributions to your super and if, for any reason, you believe that this may not be happening, you should make enquiries and find out from your employer what the situation is. Your employer, like all other employers, will need to report back to the Australian Tax Office with regards to all employee contributions that have been made to superannuation funds. These accounts may be audited and if your employer is found to have failed to make contributions and interest and administrative fees can be charged on any outstanding contributions. Employees who are still concerned about whether contributions are being made, even after speaking to their employers, can request an investigation from the Australian Tax Office. You can find more info on this page.

      Hope this information helped.

      Best regards,

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