Super is money held for retirement. Your fund invests it, so your balance can grow or fall as well as receive contributions.
- Illustrative balance
- $50,000
- 0.5% of that balance
- $250 a year
- 1% of that balance
- $500 a year
- Difference
- $250 a year
Simple percentage-fee comparison only. Actual fees can include fixed charges, investment costs and insurance. This is not a fund recommendation.
Fund and investment option are different
The fund is the provider. The investment option decides the mix of assets, such as shares, property, bonds and cash. An option with more growth assets can have bigger ups and downs.
Read your statement in three passes
First check contributions arriving. Then read fees, insurance premiums and your investment option. Finally compare performance over a suitable longer period against similar options, after relevant costs. Past returns do not promise future results.
Before making a change
Check whether insurance would change or end, and what fees or restrictions apply. Super normally has access conditions; it is not an everyday spending account. Extra contributions also have tax and contribution-limit rules.
Read a balance change as several movements
For a made-up account, start with $10,000, add $1,200 of contributions and $500 of investment earnings, then subtract $100 of fees, $150 of tax and $80 of insurance premiums. The closing balance is $11,370. These amounts are invented, not standard charges or a tax calculation. The $1,370 increase is not all investment return. Separating the movements helps you ask whether a change came from your employer, the markets or costs, rather than judging performance only by the difference between two balances.
Check money arriving, not only the payslip
Payday Super began on 1 July 2026. The linked Moneysmart guide explains the timing and the usual seven-business-day arrival period. Match pay dates and super amounts on your payslips with contributions recorded by the fund, allowing for the applicable processing rules. Keep any unmatched entries in a small list with dates. A super amount printed on a payslip is a reason to check the account, not proof that the fund has received that amount. Raise discrepancies with payroll and follow the current ATO process if needed.
Compare costs on the same balance
The $50,000 fee example above shows why percentages need a dollar translation: 0.5% is $250 and 1% is $500. Now imagine an additional fixed fee of $60 a year. That adds 0.12% of a $50,000 balance, but 1.2% of a $5,000 balance. These are hypothetical figures, and actual fee schedules can have caps and multiple parts. Use each fund’s published fee example and product documents, comparing equivalent balances and investment options. Keep insurance premiums separate so you can see what cover the payment buys.
Make one understandable review note
Record the fund name, investment option, account balance and date, recent contributions, fees and insurance cover. Next to any proposed change, write what you are trying to improve and what could change with it. For example, combining two accounts may simplify administration, but first check whether cover in the account being closed is needed and whether replacement cover is available. Do not treat a savings-account rate in the compound-interest calculator as a forecast for a super option containing shares. The risks and access rules are different.
Should you choose a super fund only because it won last year?
Sources & update record
- Moneysmart: choosing a super fund ↗
- Moneysmart: investment options ↗
- Moneysmart: how super works ↗
- Moneysmart: Payday Super from 1 July 2026 ↗
Expanded with original worked examples, practical checks and common mistakes. Current rule notes remain separate from illustrative arithmetic.
Published 18 Sept 2026 · Updated 18 Sept 2026. These dates do not guarantee rules are unchanged.
Published by Howloop. AI assists preparation. This lesson has not been reviewed by a licensed financial adviser. How we check our content →