Your Super Fund Just Failed the APRA Test — Here’s Exactly What to Do Now

By The Fine Print editorial team  |  Last updated: June 2026  |  14 min read  |  ⚠️ Not financial advice

You open a letter from your super fund, or you see a notification in your app, and it says something like: “Your investment option has not passed the APRA annual superannuation performance test.” Most Australians either don’t know what that means, or they file it away and do nothing. That’s exactly the wrong response. A failed APRA performance test means your product has delivered measurably worse returns than a benchmark portfolio — over up to a decade — after fees. The law requires your fund to tell you. It doesn’t require them to fix it on your behalf. This guide breaks down what the test actually measures, what a fail means in dollar terms, and the three things you need to do this week.

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What the APRA Performance Test Actually Measures

The APRA annual superannuation performance test is part of the Your Future, Your Super reforms. It has applied to MySuper products since 2021 and was extended to trustee-directed products (TDPs) — including many “choice” and platform investment options — from 2023. ^[1][3]

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The Dollar Cost of Staying in a Failed Product

The test isn’t about a bad year — it measures persistent underperformance over 7–10 years after fees. That’s precisely the time horizon where compounding makes small annual gaps catastrophic. ^[11][12]

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Four Ways a Failed APRA Test Harms Members

1. Years of documented underperformance have already compounded against you

By the time APRA issues a fail notice, your product has already underperformed verified benchmarks for up to a decade. The $100,000+ cost isn’t a projection of what might happen — much of it has already happened. Every year you stay in a failed product adds to that accumulated gap versus what you’d have had in a stronger fund. The fail letter is the regulator’s signal that the damage has been building for years; your response determines how much more accumulates. ^[1][3][11]

2. Many members stay despite receiving the letter

APRA’s data from the 2021 MySuper test — when 13 products failed and sent required notices — showed that many members stayed in those products despite receiving the legally required fail letter. Wallace Partners and the Financial Advice Association note that members may be overwhelmed by the technical language of the notice, uncertain about what comparison to make, or simply defaulting to inertia. The result: documented underperformers continue to hold member money for years after the letter was issued. ^[2][15][10]

3. Second-year fails restrict new entrants but don’t move existing members

When a product fails two consecutive years, it must be closed to new members — but that does not affect existing members. You can stay indefinitely in a product that APRA has officially labelled an underperformer for two years running. JANA analysts note that for platform products — which are sub-options within larger funds rather than standalone funds — this can mean the option “limps on” for years, only actively vacated by members who understood what they received and chose to act. ^[16][17][8]

4. Your rights exist — but only protect you if you use them

The Your Future, Your Super rules give you specific rights when your product fails: the right to be informed via the fail letter and fund website; the right to a clear explanation of what your trustee plans to do about the underperformance; and the right to be directed to the ATO’s YourSuper comparison tool to find better alternatives. None of these rights automatically transfer your money to a stronger option. They are tools available to you — but only useful if you pick them up and use them. ^[18][16][3]

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What’s Changed Between 2023 and 2026

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✅ Your Three-Step Action Plan

Step 1: Actually read the letter — then identify exactly what you hold

The APRA-prescribed fail letter must be sent to you within 28 days of APRA’s result. It tells you the product has performed poorly, explains how the test works, and directs you to the ATO’s YourSuper comparator. The most important thing to do first is confirm the exact product name in the letter — for example, “XYZ Super — Balanced Growth (Platform)” — against the investment option shown in your fund’s app or online portal. Platform products especially can have multiple options, and you want to be certain which specific option has failed, and that it matches what you’re actually in. If you can’t find the name in your fund’s app, call the fund’s member services line and ask: “Which investment option do I currently hold, and is that the product referenced in the fail notice I received?” ^[10][16][3]

Step 2: Compare — don’t panic, but don’t stay asleep

Once you’ve confirmed exactly what you hold, use the tools APRA and government direct you to. For MySuper products: check APRA’s 2025 MySuper performance test results and the ATO’s YourSuper comparison tool, which shows 7-year net returns and fees for every MySuper product side-by-side — this makes it straightforward to see how your fund compares to alternatives. For platform or choice investment options: search APRA’s trustee-directed product performance test tables to find your exact option. Check whether it’s a first-time or second-time fail. Even if your product scraped through the binary pass/fail, open APRA’s CPPP dashboards to check whether it shows significant underperformance on a risk-adjusted basis. A product that fails the test has been producing returns measurably worse than a benchmark portfolio for years. That is a fact in your specific account, not a warning about someone else’s money. If it also has higher fees than comparable alternatives, the case for moving becomes even stronger. ^{[23][9][8][21]}

Step 3: Decide whether to move within the fund, or move the fund — and do it deliberately

You have two primary options. First: switch to a stronger option within the same fund. Many large funds run a well-performing MySuper or flagship balanced option alongside weaker platform or “choice” options. If the fund’s governance and main product are solid, you may be able to switch internally to the better option for no cost and without losing insurance. Second: roll over to a new fund entirely. If your fund has multiple failing products, a history of governance problems, or poor long-term net performance even in its main option, compare it against alternatives using APRA and YourSuper data and consider switching to a stronger, lower-fee fund with a clean performance record. Before doing either: check what life and total permanent disability insurance your current account holds, and whether it would be lost on switching. For many Australians — especially those over 45 — the insurance question is as important as the performance question. Whatever you decide, keep a record of the fail letter, the comparison steps you took, and the new product you chose. This helps you track your decision and prevents drifting back into underperformers. ^{[3][13][11][12]}

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❓ Frequently Asked Questions

What does it mean if my fund failed the APRA test?

Your investment option has returned more than 0.5% per year less than APRA’s benchmark over up to 10 years after fees. It’s not a warning about future risk — it’s a finding about your actual past returns. ^[1][3]

Does my fund have to move my money?

No. Failing the test requires notification and (on second fail) closure to new members. Your money stays unless you act. APRA cannot compel the fund to transfer existing members. ^[10][16]

How do I look up whether my product failed?

Find your exact product name in your fund’s app → search it in APRA’s performance test results at apra.gov.au (separate tables for MySuper and TDPs). Use the ATO’s YourSuper tool for MySuper comparisons. ^[23][9][18]

Should I switch?

Seriously consider it — but check insurance first. You can switch within the fund to a stronger option, or roll over to a new fund. Keep records of your decision. ^[13][11][3]

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📚 Sources & References

1. APRA, “Annual superannuation performance test,” apra.gov.au/annual-superannuation-performance-test
2. APRA, “APRA urges super members to prioritise their own best financial interests,” apra.gov.au
3. SelectingSuper, “The superannuation performance test,” selectingsuper.com.au
4. Money Magazine, “Super Consumers Australia: dud super funds poor performance,” moneymag.com.au
5. Money Management, “APRA’s latest test reveals positive trends in super,” moneymanagement.com.au
6. APRA, “APRA releases 2024 superannuation performance test results,” apra.gov.au (2024)
7. APRA, “APRA releases 2025 superannuation performance test results and product data,” apra.gov.au (2025)
8. APRA, “2025 annual superannuation performance test — trustee-directed products,” apra.gov.au
9. APRA, “2025 annual superannuation performance test — accessible version of dashboards,” apra.gov.au
10. Wallace Partners, “APRA super fund performance test results released,” wallacepartners.com.au
11. Super Consumers Australia, submission to APRA November 2023, apra.gov.au/sites/default/files/2024-03/Submission-Super-Consumers-Australia-November-2023_0.pdf
12. Investment Markets, “Thinking of switching your super fund — here’s what to check first,” investmentmarkets.com.au
13. ABC News, “Super Consumers performance warning: retirees after retirement,” abc.net.au (19 November 2025)
14. Super Consumers Australia, “Securing Australia’s retirement: performance of retirement options research report,” superconsumers.com.au (November 2025)
15. FAAA, “APRA performance test results,” faaa.au
16. Money Management, “Will multiple failures prove fatal for super funds?,” moneymanagement.com.au
17. JANA, “Performance test: more questions as well as answers,” jana.com.au
18. APRA, “Your Future, Your Super frequently asked questions,” apra.gov.au/your-future-your-super-frequently-asked-questions
19. Treasury, “Performance test redesign consultation paper,” treasury.gov.au (2024)
20. SuperGuide, “Super funds underperformance,” superguide.com.au
21. APRA, “Comprehensive Product Performance Package insights paper 2025,” apra.gov.au
22. APRA, “CPPP — APRA counter on benchmark debate,” apra.gov.au
23. APRA, “2025 annual superannuation performance test — MySuper products,” apra.gov.au

This article is general information only and does not constitute financial advice. Before switching super funds, consider your insurance, investment options, fees and personal circumstances. Consult a licensed financial adviser before making changes to your superannuation. Information is based on APRA official performance test results and independent research, current as at June 2026. The Fine Print 🇦🇺 is not affiliated with APRA or any fund mentioned.