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The APRA superannuation performance test

Section: 1.5

1.5 The APRA superannuation performace test

MySuper performance test 

The Australian Prudential Regulation Authority (APRA) introduced the MySuper performance test as part of the Australian Government's Your Future, Your Super reforms, starting from July 2021. This test aims to ensure that superannuation funds deliver good investment performance for their members.

The MySuper performance test assesses the net investment performance of MySuper products, which are standardised, low-cost superannuation funds. The test compares the performance of these products against a benchmark. If a product underperforms the benchmark by more than 0.5% per annum over an eight-year period, it fails the test.

What happens if a fund fails the test?

If a fund fails the performance test, it must inform its members and direct them to the Australian Taxation Office's YourSuper comparison tool. Funds that fail two consecutive annual tests are prohibited from accepting new members until they pass the test.

The purpose of this measure is to protect individuals from poor outcomes and encourage funds to lower costs and boost performance.

The test is only applied to MySuper products, but the intention is to extend it to other superannuation products (known as 'trustee directed') from July 2023.

Updated 1 July 2023

Last modified: Tuesday, January 23, 2024