The Australian Prudential Regulation Authority (APRA) has released the results of the 2026 superannuation performance test.
The annual test, which has been administered by APRA since 2021, assesses the long-term performance of superannuation products to improve member outcomes and enhance transparency.
The performance test continues to identify underperforming products and drive accountability within the sector.
This year 547 superannuation products were assessed, representing 61 per cent of APRA-regulated superannuation member benefits. Of these,12 products did not pass the test:
- 1 of 50 MySuper products failed the performance test. The product is offered by BUSS (Queensland) Pty Ltd. This is the first time a MySuper product has failed the test since 2023; and
- 11 of 141 platform trustee-directed products (TDPs) failed the performance test. These include five products that have failed the test for at least two consecutive years.
This year, six trustees were responsible for the 12 failed products, with the five consecutive failed products offered by two trustees. Failure of the performance test was largely driven by poorer investment performance rather than higher administration fees and costs, which are also taken into account as part of the test assessment. All 356 non-platform TDPs assessed this year passed the test.
APRA Chair John Lonsdale said: "The annual performance test has been effective at reducing the number of members in underperforming products over the past five years. However, this year's results show that pockets of underperformance remain and reinforce the need for trustees to take timely and effective action."
APRA has also released the 2026 Comprehensive Product Performance Package, which combines the performance test results with additional measures of investment returns and fees to provide a broader view of how superannuation products are performing.
The CPPP shows that administration fees have continued to decline across all product types, however platform TDPs remain materially more expensive, even before taking into account the costs of any personal advice. The CPPP also shows that platform TDPs have higher rates of underperformance over 10 years when compared against other product types. Platform TDPs represent less than five per cent of the broader platform sector.
"Lower administration fees can make a meaningful difference to members' retirement balances by supporting higher net returns." Mr Lonsdale said. "APRA expects trustees to maintain a close focus on administration fees and fund performance in the best financial interests of their fund members."
APRA administers the performance test in accordance with legislation set by Parliament. APRA notes the Government is giving consideration to options to strengthen the performance test, with regard to promoting productivity and protecting member interests.
View the results of the Annual superannuation performance test and Superannuation product performance on APRA's website.
