Types of super funds in Australia

There are five main types of super fund in Australia: industry, retail, public sector, corporate and self-managed super funds (SMSFs). They differ in how they're run, what they cost, how much choice and control you have, and how much responsibility sits with you.

A super fund is where your retirement savings are held and invested. Over time, contributions from your employer and any additional personal contributions are invested to help grow your balance for retirement. The type of fund you choose affects your fees, your investment options, and how involved you need to be.

This guide walks through how each type of super fund works and who it tends to suit. The aim is to help you understand the differences clearly, so you can compare your options with confidence.

Before comparing individual funds, it helps to understand the different types available. These categories shape how super works in practice, from fees and investment options to how involved you need to be. 

This is general advice only. You may wish to speak with a financial adviser to understand what suits your circumstances and goals.

In Australia, super funds generally fall into five main types. Four are managed by professional trustees on behalf of members, while the fifth, a self-managed super fund, puts you in charge of running the fund yourself.

In Australia, super funds generally fall into five main types. Four are managed by professional trustees on behalf of members, while the fifth, a self-managed super fund, puts you in charge of running the fund yourself.

A key difference between super fund types comes down to who is responsible for running the fund.

For industry, retail, public sector and corporate funds, that responsibility sits with a professional trustee. These funds are regulated by the Australian Prudential Regulation Authority (APRA), which oversees how they are managed on behalf of members.

Self-managed super funds (SMSFs) work differently. The members are also the trustees or directors of a corporate trustee, which means they are responsible for managing the fund and ensuring it complies with super and tax laws. SMSFs are regulated by the Australian Taxation Office (ATO).

This difference in responsibility shapes many of the trade-offs across super fund types, including how much control you have, how much time is required, and who is accountable for decisions.

Industry super funds were originally set up for workers in specific industries, such as construction, health or hospitality, but most are now open to anyone.

They are typically run by professional trustees, with profits returned to members rather than paid to shareholders. This approach has often been linked to competitive fees, although fees and outcomes will always vary between individual funds.

Most industry funds also offer a MySuper option as a default, along with a smaller range of additional investment choices.

Industry funds tend to suit people who want a straightforward, professionally managed option, with less need to actively choose or adjust investments.

Retail super funds are run by financial institutions and wealth managers. They typically offer a broader range of investment options, from pre-built diversified portfolios through to access to individual funds, shares and other assets.

They are designed to give members more flexibility in how their super is invested. In many cases, they also provide more advanced digital tools and integrate with financial advice, making it easier to manage super alongside other investments.

Historically, some retail funds charged higher fees. Over time, competition and regulation have narrowed many of these differences, so fees and features now vary more between individual funds than by category alone.

Retail funds tend to suit people who want more choice in how their super is managed, particularly those who are comfortable tailoring their investments or working with a financial adviser.

They can be a good fit where flexibility and access to a wider range of options is more important than a simplified, hands-off approach.

For transparency, Colonial First State sits within the retail category. This is noted purely for context, not as a statement of suitability. Any fund should be assessed on its own merits, including net performance, fees and features. Past performance is not a reliable indicator of future performance.

Public sector super funds are linked to government employment, including federal, state and territory roles. Access is usually limited to people working in those sectors or who have worked in them previously.

Some older public sector funds include defined benefit arrangements. In these cases, retirement outcomes are based on a formula, often linked to salary and years of service, rather than investment performance alone.

Public sector funds tend to suit current and former government employees who are eligible to remain in them.

If you’re part of one of these schemes, it’s important to understand how it works before making any changes. Defined benefit features, where they apply, can be difficult to replicate in other types of super fund.

Corporate super funds are set up by employers for their employees. In many cases, they are administered by a larger retail or industry fund, while still offering terms that are specific to that workforce.

Because they are linked to a single employer, corporate funds may include negotiated features such as lower fees, tailored insurance or other benefits that may not be available more broadly.

Corporate funds tend to suit employees of the organisation offering them, particularly while those employment-linked features apply.

If you leave that employer, those benefits may change or no longer apply. It’s important to review whether the fund continues to meet your needs once your circumstances change.

A self-managed super fund (SMSF) is a private super fund that you manage yourself, usually with up to six members. Unlike other fund types, there is no external trustee, as the members act as trustees or directors of a corporate trustee and take on responsibility for running the fund.

With an SMSF, you are responsible for setting up and managing the fund. This includes putting the legal structure in place, developing an investment strategy, making investment decisions, and keeping records.

The fund must also meet ongoing regulatory requirements, including complying with superannuation and tax laws, lodging an annual return and arranging for the fund to be audited by an independent auditor each year. While you can use professionals such as accountants, administrators or advisers to help, the legal responsibility for the fund always remains with the trustees or directors of a corporate trustee.

An SMSF requires a higher level of involvement than other types of super fund.

As a trustee or director of a corporate trustee, you are responsible for ensuring the fund complies with superannuation and tax laws. This includes maintaining records, meeting reporting obligations and making decisions in line with the fund’s investment strategy.

There are also ongoing costs, such as administration and audit, along with a time commitment to managing or overseeing the fund. Because many of these costs are relatively fixed, SMSFs are often considered more cost-effective at higher balances, where those costs can be spread more efficiently.

An SMSF tends to suit people who want direct control over their investments and are comfortable taking on the responsibilities of running a super fund.

This usually includes having the time and interest to stay involved, or to actively oversee those managing it on your behalf. For those who want greater choice without the same level of responsibility, other fund types may offer a more balanced approach.

MySuper is not a separate type of super fund. Instead, it is a type of simple, low-cost default product that can be offered by industry, retail, public sector and corporate funds.

These products have standardised features, which means they are designed to be straightforward and easier to compare across different providers.

If you do not actively choose an investment option, your employer contributions are usually paid into a MySuper option by default.

This is why a large share of Australians hold their super in a MySuper product. Because these options follow a consistent structure, they provide a useful baseline for comparing fees, investment performance and features across funds.

When comparing super funds, the most common decision is between industry funds, retail funds, and self-managed super funds. These options represent different approaches to how your super is managed, and how much control and responsibility sits with you.

The comparison below highlights the key differences.

Industry and retail funds sit within the same regulatory framework and are managed by professional trustees. Within this group, industry funds were often associated with lower fees, while retail funds tend to offer more choice and flexibility.

Understanding the type of super fund is only the first step. Within each category, individual funds can vary widely in terms of fees, long term performance, insurance and features.

Once you know which type suits your needs, the next step is to compare specific funds on those details, looking at options on a like for like basis.

Most people already have super. The first step is understanding what you already have, including the type of fund you’re in, the investment option you’re invested in, and the fees, returns and insurance attached to it.

Without that baseline, it is difficult to know whether another type of fund would leave you better or worse off.

Across all fund types, the key trade-off is how much control you want over your super, and how much time and responsibility you are prepared to take on.

More control usually brings more flexibility in how your super is invested, but it also comes with greater responsibility, time commitment and often higher costs. Less control typically means a simpler experience, with decisions handled by a professional trustee.

Once you understand the type of fund that may suit you, the next step is comparing individual funds.

Focus on options with similar risk profiles, and look closely at fees, long term net performance, insurance and key features. Using independent sources can help you sense-check your thinking before making a decision.

Past performance is not a reliable indicator of future performance.