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SUPER NATION: Finance sub-sectors lobby to avoid levy
Super Nation is a fortnightly column that examines, explains and analyses key issues in one of Australia's largest, fastest-growing and most important industries: superannuation. Lobbying is well underway to see who will be responsible for funding the scheme that compensates Australians who lose money due to bad financial advice or product failures. The competition among advocates is to be excluded from (rather than included in) the finance sub-sectors that pay levies supporting the Compensation Scheme of Last Resort (CSLR), which pays up to $150,000 to compensate consumers with unpaid determinations from the Australian Financial Complaints Authority. This is not a club you want to join if you can avoid it. The super industry has been ensnared in this issue for the first time, with members having to help foot the bill for a special levy the Assistant Treasurer Daniel Mulino has introduced to meet a funding shortfall for 2025-26. A special levy may be imposed if the levy estimate amount exceeds the $20 million sub-sector cap, which was the case for the year in question. The $47.3 million levy will be split between financial advisers (22%), credit providers (15.3%), responsible entities (13.7%), superannuation trus
Retirement
Super funds returned 8.8% in 2025 - SuperRatings
Australian superannuation funds generated an 8.8% return for median balanced options in the accumulation phase in 2025 but 2026 is expected to be challenging, according to SuperRatings. The super research house estimated this option finished the year on a high note after a small stumble in November by generating a 0.3% return in December. Although the full year outcome was below the 11.1% delivered in 2024, it comfortably exceeded the long-term average annual return of 6.5% since 2000. “We have seen another strong year of superannuation returns. Funds continue to deliver above expected returns; however, there remain concerns over how long such growth can last,” SuperRatings Director Kirby Rappell said in a media release. “A negative return in November meant the median Balanced option missed reaching double digits for 2025 and the outlook for 2026 is increasingly unclear.”Source: SuperRatingsSuperRatings said the median growth option returned 10.2% last year, including 0.3% in December, while a smaller allocation to shares resulted in the median capital stable option returning 6.2% after 0.1% in the last month of the year. International shares were the only asset class to reach double-digit returns for the year, whil
Retirement
Super returns hit 35% over three years after 9.3% in 2025
The value of superannuation assets has increased by more than one-third over the last three years, according to Chant West. The research, data and analytics provider said median growth funds (those with 61% to 80% in growth assets) delivered a return of 9.3% in the 2025 calendar year. “This follows impressive gains of 9.9% in 2023 and 11.4% in 2024, translating to nearly 35% growth over the past three years,” Chant West said in a media release. “Super fund members invested in higher-risk portfolios enjoyed even stronger outcomes.” Chant West Senior Investment Research Manager Mano Mohankumar said international share markets were the key driver of performance in 2025, returning 18.6% on a currency-hedged basis despite uncertainty about tariffs and geopolitical tensions. He said the return from international shares in unhedged terms was lower at 12.5% due to the appreciation of the Australian dollar. On average, growth funds have 31% invested in international shares and 25% in Australian shares, which returned 10.7%. All major asset classes generated positive returns over the period. Although Chant West was finalising the details for unlisted assets it estimated returns were 7-10% for unlisted infrastructure,
Retirement
UK reforms cut generous expat state pension entitlements
While there will always be an England – as the Vera Lynn war song goes – there’s a diminishing point at which old blighty is willing to provide for your golden years if you’re one of the cohort of ex-pats who worked and lived in the United Kingdom for over a certain period of time. Significant changes to the UK Governments' State Pension rules are expected to materially impact many expatriates currently relying on these "generous" payments as an income stream, and you could be one of them. The UK is one of a handful of countries globally that doesn’t technically have a means test for its aged pension. In other words, nothing you hold in Australia - including superannuation - affected the amount you received from the British government.What happenedThe changes - announced by Chancellor of the Exchequer Rachel in late November – were part of the Labour Government’s 2026 Budget. As it currently stands, payment amounts are based on an individual's National Insurance (NI) contribution record rather than income or assets. This means the weekly amount received is dependent on contributions made by employers and employees over a person’s working life. The existing rules allowed those who were eligible to make payments b
Retirement
SUPER NATION: No rest for watchdogs in wake of collapses
Super Nation is a fortnightly column that examines, explains and analyses key issues in one of Australia's largest, fastest-growing and most important industries: superannuation. Nobody could accuse the regulators of Australia’s A$4.3 trillion superannuation sector of being asleep at the wheel in the wake of the collapse of the Shield Master Fund and First Guardian Master Fund. In turns out the the prudential and corporate watchdogs were working right up until Christmas in taking action against those it sees as needing to be called to account over the A$1 billion (US$660 million) of losses that investors suffered. On 23 December the Australian Prudential Regulation Authority (APRA) announced it had imposed additional licence conditions on Diversa Trustees Limited to address concerns relating to its investment governance frameworks and practices, including oversight of platform investment options made available to members. APRA did not specifically name Shield or First Guardian in its media release but it has previously has added conditions to the licences of Diversa and the other investment platform that offered Shield, Equity Trustees. The previous day Azzet had reported regulators had widened their action against

Retirement
Super funds return 9.1% in 2025
Australian superannuation funds generated a 9.1% return for median balanced options in the accumulation phase in 2025, according to SuperRatings estimates. This was more than the long-term average of 7.1%, the super research house said in a media release. Funds continued to strongly benefit from international share exposure as the key driver of performance although all asset classes were expected to have made a positive contribution, it said. The median balanced option, with 60-76% in growth assets, returned 0.35% in December but positive returns over nine months including the seven months to October added up with a handful of top performers expected to reach double digit returns for the year. “As the strong performance of equity markets continues to drive superannuation returns, funds with higher than average exposure to international equity have benefited in 2025, although we see funds focused on how to manage the ups and downs of the market, reflecting the uncertainties that exist in the market outlook generally,” Director Kirby Rappell said. He said “further anticipation” around artificial intelligence (AI) was expected in 2026 with risks around inflation in Australia and markets being driven by exuberance aroun
Retirement
SUPER NATION: Looking back on a taxing year
Super Nation is a fortnightly column that examines, explains and analyses key issues in one of Australia's largest, fastest-growing and most important industries: superannuation. As the year rolls to an end, it is timely to review 2025 for the key events in Australia’s superannuation sector. Where do we start?Tax backflipAn obvious place is the tax on high account balances, first proposed in 2023 and changed significantly in October after a major backlash. Prime Minister Anthony Albanese decided the political impact of the controversial decision to tax unrealised capital gains was too much to endure, even for his Labor Government that had been returned to power in a landslide victory earlier in the year. The change, which lifts the tax rate on earnings on balances above $3 million (US$1.98 million) from 15% to 30%, will apply only to realised earnings, and the thresholders will be indexed to inflation to limit the number of people caught in the net. But, in an attempt to reduce the fiscal impact, which was estimated at $4.3 billion over the forward estimate period, the Government introduced a second large balance threshold with a 40% rate applied to earnings on balances over $10 million. As we wrote in this colum
Retirement
Super fund stumble dims second strong year
After a seven-month streak of positive returns, superannuation funds have suddenly dropped the ball by reporting a loss in November, but unless you check your balance regularly – as most people don’t – chances are you’d never know. According to SuperRatings returns data for November, the median balanced option lost 0.5% last month while the median growth option was down 0.6%. Those funds with a capital stable option performed marginally better with smaller losses of 0.2%. Pension returns also fell over the month, with the median balanced pension option losing 0.5%. While the size of these losses shouldn’t have you reaching for the anti-depressants, all eyes will now be on whether this heralds lower return expectations heading into the New Year. November’s losses were an about-face from a month earlier, when the median balanced option had seen positive gains of 1.3%. While November losses were attributed to a pullback in Australian shares and listed property sectors, with the ASX200 losing 3.6% during the month, the 2026 outlook suggests the downturn could be short-lived.Accumulation returns to 30 November 2025Due to a resurgence in the materials/resources sector, analysts expect the S&P/ASX200 to achieve between
Retirement
Retirement comfort more than money - research
Some Australians felt comfortable in retirement even if they did not believe they had enough superannuation, according to new research. Research firm Investment Trends’ Head of Research, Julian Cappe, said planning early for retirement provided super fund members with more options or levers to pull. “If you need to build up your super balance, the best way to do that is have a high income,” Cappe told a media briefing on key insights from the new Brighter Super & Investment Trends 2025 Retirement Income Report. The report, based on a survey of 3,679 Australians aged 40 and above, including 1348 retirees, between August and September, detailed Australians’ preparedness, expectations and confidence as they approached and moved through retirement. Cappe said 94% of retirees with balances over A$750,000 (US$495,000) and less than 40% of those with less than $100,000 said they were living comfortably in retirement. But he said a small majority with between $100,000 and $500,000 also said they had a comfortable retirement. “What that tells us is that even without a large super balance, if you've taken appropriate steps to plan, to seek guidance and to prepare to have an income purchase retirement, you can feel just as