A report by Rainmaker Information showed 2021 investment returns were at a record-high in 34 years, whilst total fees paid were at historic lows. 

The Superannuation Benchmarking Report reviewed 2,683 fee options offered by 175 superannuation funds, and also revealed the top ten lowest cost MySuper products on the market: 

Rank MySuper Product Total Expense Ratio
1 UniSuper 0.65%
2 Bendigo SSSE 0.70%
3 AMG Corporate 0.70%
4 Virgin Super Employment 0.73%
5 QSuper Accumulation 0.74%
6 Suncorp ESB 0.77%
7 AustralianSuper 0.77%
8 AMIST Super 0.81%
9 Rest Super 0.89%
10 EISS Super 0.89%

Source: Rainmaker Information

The Total Expense Ratio (TER) is a measure of the total costs associated with managing and operating an investment fund, such as a mutual fund.

The total cost of the fund is divided by the fund's total assets to arrive at a percentage amount, which represents the TER.

Superannuation fees overall have fallen by a quarter over the past decade, according to the report, with almost half the decline happening during the past three years.

Executive director of research and compliance at Rainmaker Information, Alex Dunnin, said competition is driving cost cuts. 

"Six in 10 default MySuper products cut their fees in 2020-21," Mr Dunnin said.

"For the average Australian, these lower fees translate into them getting better value from their super funds. The average Australian pays about $2,200 annually in fees.

"While that's gone up a bit in dollar-terms, so has their account balance. And let's not forget the record investment returns their super funds have delivered to them."

The future of super fees

Rainmaker expects the pressure on super funds to lower their fees will only intensify, and because investment costs make up a huge share of the superannuation fees fund members pay, this will force funds to change the way they invest.

"Products charging high fees will experience huge market and political pressure in the wake of the Your Future Your Super reforms to cut their fees. To do this, funds will have to consider indexing a bigger share of their portfolios," Mr Dunnin said. 

"This pressure on super fund fees, if it stays on its current track, could mean that in five years' time, average super fund fees could be as low as 0.85%. Australia's sharpest priced funds by then could be charging total fees below 0.5%.

"If this was to happen, Australia could be on track to have one of the best value superannuation fund systems in the world."

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Looking to take control of your retirement? This table below features SMSF loans with some of the most competitive interest rates on the market.

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Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.99% p.a.
7.00% p.a.
$3,323
Principal & Interest
Variable
$null
$720
70%
  • Minimum 30% deposit needed to qualify
  • Available for purchase or refinance
  • No application, ongoing monthly or annual fees.
  • Dedicated loan specialist throughout the loan application
 Disclosure
7.19% p.a.
7.74% p.a.
$3,391
Principal & Interest
Variable
$395
$null
60%
  • Offset facility
  • EASY Refinance with minimal documentation
  • Residential & Commercial
  • Australia’s first certified Impact Lender
7.24% p.a.
7.26% p.a.
$3,407
Principal & Interest
Variable
$0
$710
70%
 Disclosure
7.25% p.a.
7.65% p.a.
$3,411
Principal & Interest
Variable
$30
$825
80%
7.74% p.a.
7.76% p.a.
$3,579
Principal & Interest
Variable
$0
$710
80%
 Disclosure
7.75% p.a.
7.83% p.a.
$3,582
Principal & Interest
Variable
$0
$995
80%
7.49% p.a.
7.50% p.a.
$3,493
Principal & Interest
Variable
$0
$720
80%
  • Minimum 20% deposit needed to qualify
  • Available for purchase or refinance
  • No application, ongoing monthly or annual fees.
  • Dedicated SMSF loan specialist throughout the loan application
 Disclosure
  • Minimum 30% deposit needed to qualify
  • Available for purchase or refinance
  • No application, ongoing monthly or annual fees.
  • Dedicated loan specialist throughout the loan application

More details
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning



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