Types of super funds¶

Not all super funds are the same. They are run by different kinds of organisations, and they can differ in their fees and how they are structured. Your super might sit in one type today and a different type after you change jobs.

This lesson walks through the main kinds of fund at a beginner level. It does not recommend any fund or provider — it just explains what broadly sets them apart, so you can make sense of the choices when you come to look at your own super.

In one line

The main kinds are industry funds, retail funds and self-managed super funds, plus public-sector and corporate funds — each run and structured a little differently.

Why this matters¶

At some point you may need to choose a fund, or work out what type your current fund is. Knowing the broad categories helps you understand what you are looking at and ask better questions. It is background knowledge, not a decision anyone should rush.

What you will learn¶

The main types of super fund
How industry, retail and self-managed funds broadly differ
What public-sector and corporate funds are

Understanding the concept¶

Moneysmart, the Australian Government's money guidance service, describes several main types of super fund.

Industry funds. These were once limited to workers in particular industries, but Moneysmart notes most are now open to everyone. Profits go back to members.

Retail funds. These are usually run by financial institutions and are open to anyone. Moneysmart notes that not all profits go back to members — some can go to the company running the fund and its shareholders.

Public-sector funds. These are generally for people working for the government. Moneysmart notes they often have lower fees, and profits go back to members.

Corporate funds. These are arranged by an employer for its staff. Profits usually go back to members, though a corporate fund run as a retail fund may keep some.

Self-managed super funds (SMSFs). An SMSF is a fund you set up and run yourself, with a small number of members who are all responsible for it as trustees. Moneysmart notes SMSFs usually involve higher costs, more admin and more responsibility, and suit people with the time, knowledge and a large enough balance to make it worthwhile.

The right type depends entirely on a person's own situation — this lesson does not recommend one over another.

For accountants & bookkeepers

The industry / retail / public-sector / corporate split describes how a fund is run and who profits flow to, rather than how the member's money is taxed or invested. An SMSF shifts the trustee duties and compliance load onto the members themselves, which is the main reason Moneysmart frames it as suited to those with larger balances and the capacity to manage it.

Example¶

Tom has had three jobs. His first employer's default fund was an industry fund. When he moved to a big company, his super went into a retail fund. A friend of Tom's works for the state government and is in a public-sector fund, while Tom's uncle, who runs his own business, has set up an SMSF and manages it himself. Same system, four different types of fund — each simply structured and run in its own way.

Common misunderstandings¶

Thinking one type is always better — the right fit depends on your own situation.
Assuming an SMSF is a simple way to "take control" — it carries real duties and costs.
Believing all funds return every dollar of profit to members — some retail funds do not.

How this works in myaccountant¶

In the app — for employers, myaccountant stores each employee's chosen super fund details, whatever type of fund it is, checks them, and pays the super owed to that fund on each pay. myaccountant is not a super fund and does not offer or recommend funds — it simply pays super to the fund the employee has chosen.

Key points¶

Industry funds were once industry-specific but are mostly open to everyone now.
Retail funds are usually run by financial institutions; not all profit returns to members.
Public-sector funds are generally for government workers and often have lower fees.
Corporate funds are arranged by an employer for its staff.
An SMSF is one you run yourself, with more cost, admin and responsibility.
The best type depends on the person — this lesson recommends none.

Learn next¶

General information only — not tax, super or financial advice.

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