Evidence-backed. Based on APRA’s official 2025 performance test results and published statistical data. General information only ā not financial advice. Last updated: June 2026.
ā” Key Takeaways
- APRA’s 2025 annual performance test covers 563 products ā all 52 MySuper products passed; 7 platform products failed.
- The 7 failing products cover 8,500 members and must send members a failure notice within 28 days.
- More than 40% of platform trustee-directed products with a 10-year history show significant underperformance against benchmarks.
- The test only catches products that are measurably bad. Mediocre-but-passing products still cost members billions annually.
- If your fund fails the test, you can leave at any time ā exit fees are banned by law.
APRA 2025 Superannuation Performance Test: Did Your Fund Make the Cut?
Every year, APRA puts Australia’s super funds through a formal performance test ā and publishes the results. If your fund fails, it has to write to you. If it fails two years in a row, it must close to new members. The 2025 results are out, and while the headline numbers look reassuring, the full picture is more complicated. Here is what you need to know ā and what to do about it.
General information only. Not financial advice. Consult a licensed financial adviser for advice specific to your situation.
Table of Contents
- What is the APRA performance test?
- 2025 results: who failed and what happens next
- The platform product problem APRA is really worried about
- What the test doesn’t catch
- What to do if your fund failed ā or if it passed but still charges too much
- Frequently asked questions
What Is the APRA Performance Test?
APRA’s annual superannuation performance test was introduced in 2021 as part of the Your Future, Your Super reforms. It measures whether a product’s net investment return (after fees) meets a benchmark based on the actual asset allocation of that product ā meaning funds can’t game the test by claiming a benchmark that doesn’t match what they actually hold. [1]
The test applies to two categories:
- MySuper products ā the default, employer-selected products most workers are automatically placed into. These were subject to the test from 2021.
- Trustee-directed products (also called platform or choice products) ā products with a defined investment strategy, often linked to advisers or retail wrap platforms. These were added to the test scope in 2023ā24.
Funds that fail are required to notify their members within 28 days. Funds that fail two consecutive tests must close to new members. [2]
2025 Results: Who Failed and What Happens Next
The 2025 test results, released in August 2025, covered 563 products in total. Here’s the breakdown: [3]
- 52 MySuper products tested ā all 52 passed. This is the second consecutive year all MySuper products have passed, reflecting a significant improvement since the test was first introduced in 2021.
- 511 trustee-directed products tested ā 7 failed, covering approximately 8,500 members and around $1.6 billion in assets.
The 7 failing funds are required to send written notices to all affected members. Members in a failed product are not locked in ā they can choose to move their super at any time, at no cost. [2]
The Platform Product Problem APRA Is Really Worried About
The headline result ā only 7 failures ā understates the problem significantly. APRA’s analysis of the broader platform product market reveals something more concerning: more than 40 per cent of trustee-directed products with a 10-year investment history show significant investment underperformance against their benchmarks, even after the formal failures are excluded. [3]
Why does this happen? Several reasons:
- Limited 10-year history: Products launched after 2015 don’t have enough data to be assessed against the full test period. Many underperformers fall into this gap.
- The benchmark threshold: A product can underperform by, say, 0.45 percentage points per year and still pass. That’s below the failure threshold of 0.50%, but it’s still a significant drag over 30 years.
- Adviser-linked products: Many trustee-directed products are sold through financial advisers who receive ongoing trailing commissions. The fee structure creates an incentive to keep clients in products that may not be in their best interest.
What the Test Doesn’t Catch
APRA’s performance test is a binary pass/fail based on a specific performance threshold. It catches products that are measurably bad. It doesn’t identify products that are:
- Mediocre: Products that pass the test but consistently deliver in the bottom quartile of their peer group.
- Expensive for what they deliver: Products with fees of 1.5ā2.5% that pass the net-of-fee performance test but only because their benchmarks happen to be lower-return-oriented.
- Unsuitable for the specific member: A product might pass the aggregate performance test while being completely wrong for your age, risk tolerance, or retirement timeline.
APRA itself has been clear that passing the annual test is a floor, not a standard of excellence. [4]
What to Do If Your Fund Failed ā Or If It Passed But Still Charges Too Much
- Check your fund’s status. Go to APRA’s superannuation product performance tool and search for your fund. You can see the test result for your specific product, along with its benchmark comparison.
- If your fund failed, you should receive a written notice from your fund within 28 days of the test results. You can leave at any time. Exit fees are banned. Use myGov ā ATO ā Super to initiate a rollover to a better-performing fund.
- If your fund passed but ranks in the bottom quartile, consider whether the marginal outperformance of the benchmark is worth the fees you’re paying. Top-performing industry funds with lower fees may offer significantly better long-term outcomes ā even if both pass the formal test.
- Use the APRA heatmap. APRA publishes a fund heatmap that goes beyond the pass/fail test, colour-coding funds on investment returns, fees, and member outcomes. Red or amber ratings on multiple measures are a warning sign. [4]
Frequently Asked Questions
How do I find out if my fund failed the 2025 APRA test?
Go to APRA’s superannuation product performance tool and search for your fund and product. If your product failed, your fund must notify you in writing within 28 days of the results.
What happens if I’m in a failed fund?
Your fund must write to you within 28 days. You can leave at any time for free ā exit fees are banned. A fund that fails two consecutive years cannot accept new members, but existing members may remain. You should seriously consider switching.
Does passing the APRA test mean my fund is good?
No. The test is a floor, not a standard of excellence. Over 40% of platform products show significant underperformance even after excluding formal failures. A passing fund can still be expensive and mediocre. Use APRA’s heatmap for a fuller picture.
What’s the difference between MySuper and a trustee-directed product?
MySuper products are simple default options used by employers. Trustee-directed products are choice or platform products with specific investment strategies, often adviser-linked. Both are now subject to the annual APRA performance test.
š The Fine Print Verdict
APRA’s performance test has done real work ā it forced bad funds to close or improve, and the MySuper sector is measurably better than it was five years ago. But the test only catches the worst performers. The larger problem ā mediocre funds charging above-average fees ā remains largely invisible to it. Your job is to go beyond the pass/fail result, look at where your fund sits on the full heatmap, and compare it honestly against the best alternatives available.
Do this now: Look up your product on the APRA tool ā Check the heatmap ā If you’re in the red or amber zone on fees and returns, it’s time to compare alternatives.
Sources
- Treasury, Your Future, Your Super ā Performance Test Methodology, 2021. treasury.gov.au
- Superannuation Industry (Supervision) Act 1993, s. 60Cā60D (failure notification and closure obligations). legislation.gov.au
- APRA, 2025 Superannuation Performance Test Results and Product Heatmap, August 2025. apra.gov.au
- APRA, Superannuation Fund-Level Heatmap 2025, August 2025. apra.gov.au
Disclaimer: The Fine Print š¦šŗ provides general financial information only. Content is not financial advice and does not take into account your objectives, financial situation or needs. Always consider seeking independent licensed financial advice before acting. Content accurate as at June 2026.