Australian superannuation funds improved their performance in 2025 with no MySuper products or non-platform trustee-directed products (TDPs) failing the annual test, according to the Australian Prudential Regulation Authority (APRA).
However, seven platform TDPs failed the test, APRA said in releasing the results of the 2025 performance test covering 563 superannuation products, which was the fourth year their long-term performance has been measured by the regulator.
In fact some passed the test solely by offering members rebates, and more than 40% underperformed significantly.
APRA said that in 2025:
- All 52 MySuper products passed the test (the same as in 2024)
- All 374 non-platform TDPs passed (the same)
- Seven of 137 platform TDPs failed (37 in 2024)
The performance test applies to the default MySuper and trustee-directed products and represents 62% by value of the APRA-regulated superannuation sector, which was valued at $3.0395 trillion (US$1.97 trillion) at 30 June 2025.
Deputy Chair Margaret Cole said the test showed improvements but reminded trustees to act in their members’ best financial interests and ensure their products delivered genuine value.
“Since the introduction of the performance test in 2021, APRA has seen real progress in reducing underperformance for products subject to the performance test,” Cole said in a media release.
The number of members in products that did not pass the test fell from one million to 8,500.
Cole said a small number of platform TDPs passed the performance test partly because rebates were applied, and although this helped members, APRA would engage with relevant trustees to reinforce the expectation of sustained performance improvement.
The results showed underperformance by TDPs offered on investment platforms, which provided members with wider investment options and flexibility.
But more than 40% with a 10-year performance history exhibit significant investment underperformance.
