Choosing an Australian super fund as a migrant: what to compare and why

Migratio Editorial · Last updated 23 July 2026

TL;DR: New migrants should compare super funds on fees, investment performance, insurance, and ease of use. Industry funds generally have lower fees than retail funds. The ATO's YourSuper comparison tool provides standardised fee and performance data. If you don't choose a fund, your employer will default you into one — which may not be the best option for your circumstances.

Choosing a superannuation fund is one of the first financial decisions you face as a new migrant in Australia, and it is one of the easiest to ignore. Your employer asks you to nominate a fund, you have no context for what to choose, and the default option seems fine. But the fund you are in affects how much you pay in fees, how your money is invested, what insurance you receive, and ultimately how much you retire with. A difference of 0.5% in annual fees on a AUD 500,000 balance is AUD 2,500 per year — and over 20 years of compounding, the gap widens dramatically.

The types of super funds in Australia

Australian super funds broadly fall into three categories.

Industry super funds are not-for-profit funds that were historically associated with specific industries (AustralianSuper for general workers, HESTA for healthcare, Cbus for construction, UniSuper for universities) but most now accept members from any industry. They tend to have lower fees because any surplus is returned to members rather than distributed as profits.

Retail super funds are operated by financial institutions (banks, insurance companies, investment firms) on a for-profit basis. They tend to offer more investment options and advisory services but often charge higher fees.

Self-Managed Super Funds (SMSFs) are funds managed by the members themselves (up to six members). They offer maximum control but come with legal obligations, compliance costs, and administrative responsibility. SMSFs are generally only cost-effective for balances above AUD 200,000–250,000 and are not typically appropriate for new migrants unless they are transferring substantial overseas pension balances.

What to compare

Fees are the most important controllable factor. Super funds charge several types of fees: administration fees (typically AUD 50–150 per year as a flat amount), investment fees (a percentage of your balance, typically 0.5–1.5% per year), and in some cases, buy-sell spreads and activity fees.

The ATO's YourSuper comparison tool provides standardised fee data for all MySuper (default) products, making direct comparison straightforward (ATO). Look at the total annual fee for a standard AUD 50,000 balance — this captures both flat and percentage-based fees in a single comparable figure.

Investment performance over 5, 7, and 10 years gives context, though past performance is not a guarantee of future returns. The YourSuper tool also flags underperforming funds — if a fund has been identified as underperforming the benchmark over two consecutive annual assessments, members are notified.

APRA (the Australian Prudential Regulation Authority) publishes annual data on fund performance and fees in its Annual Superannuation Bulletin (APRA). Independent research firms including Chant West, SuperRatings, and Rainmaker also publish fund ratings and comparisons.

Investment options matter if you want control over how your super is invested. Most funds offer a default balanced or lifecycle option (which adjusts the asset allocation based on your age), along with choices ranging from conservative (more bonds and cash) to high growth (more domestic and international shares). For younger migrants with decades until retirement, a higher-growth option may deliver better long-term returns — but this depends on individual risk tolerance.

Insurance is bundled into most super funds. Default insurance typically includes life cover and total and permanent disability (TPD) cover, with premiums deducted from your super balance. Some funds also offer income protection insurance. Review the default cover level, the premium cost, and whether the cover meets your needs. If you already have life insurance from another source (such as a policy from your home country), you may not need duplicate cover through super.

Considerations specific to migrants

As a new migrant, several factors deserve extra attention.

If you are on a temporary visa and may claim DASP when you leave, fees and insurance matter more in the short term than long-term performance. A fund with low fees and the option to cancel insurance (reducing fee drag on a balance you plan to withdraw within a few years) may be more appropriate than a fund optimised for long-term growth.

If you are a permanent resident planning to stay in Australia long-term, treat the fund choice as a 20-to-40-year decision. Low fees and consistent performance over long periods matter most. Industry funds have generally outperformed retail funds on a net-of-fees basis over the past decade, according to APRA data, though individual fund results vary.

If you plan to transfer an overseas pension to Australian super (such as a UK pension via ROPS), you may need an SMSF rather than a standard fund. Not all public offer funds accept overseas pension transfers. See the guide on transferring UK pensions to Australia.

If you have worked for multiple employers and accumulated multiple super accounts, consolidating into your chosen fund reduces fees and simplifies management. See the guide on consolidating super accounts.

How to make your choice

The ATO's YourSuper comparison tool is the best starting point. It shows standardised fees and seven-year returns for all MySuper products. Sort by fees to identify the lowest-cost options, then check whether those funds have acceptable performance records.

Research two or three shortlisted funds in more detail. Look at their full investment option menu, their insurance offerings, their member services (app, online access, educational resources), and any specific features relevant to your situation.

Complete a Standard Choice Form with your chosen fund's details and submit it to your employer. Your employer must direct future SG contributions to your chosen fund. If you want to move an existing balance from a default fund, you can initiate a rollover through your new fund's website or through the ATO's online services on myGov.

Do not overthink this decision to the point of paralysis. Choosing any reasonable low-fee industry fund is better than staying in a high-fee default fund or delaying the decision indefinitely. You can always switch later if your circumstances change.

Frequently asked questions

What if I don't choose a fund?

Your employer will direct contributions to a default fund — often a large industry or retail fund selected by the employer. This may not be the lowest-fee or best-performing option for your circumstances. You can switch at any time.

Can I have super in more than one fund?

Yes, but there is no advantage to it. Each fund charges its own fees and deducts its own insurance premiums. Having multiple accounts erodes your balance faster. Consolidate into one fund unless you have a specific reason for maintaining multiple accounts.

Are there super funds specifically for migrants?

No. All super funds are open to any eligible member regardless of citizenship or visa status. Some funds may offer multilingual services or resources aimed at new migrants, but the financial products are the same.

How often should I review my super fund?

Once a year is sufficient for most people. Check your annual statement, compare your fund's fees and performance against the YourSuper tool, review your insurance, and ensure your contributions are being received correctly.

Can I change my investment option within my fund?

Yes. Most funds allow you to switch between investment options (for example, from balanced to high growth) through their website or app, usually at no cost. This changes how your existing balance and future contributions are invested.