Industry Super Funds 2025: Policy Changes, Performance & Value

Industry super funds have long been a favourite among Australians looking for low fees and reliable investment performance for their retirement savings. But in 2025, the landscape is shifting. With new government regulations, increased competition, and changing economic conditions, how do industry funds stack up today? Let’s break down the latest trends, policy changes, and real-world examples to help you make sense of your super options.

What Sets Industry Super Funds Apart in 2025?

Industry super funds are not-for-profit, member-owned funds originally created to serve workers in specific industries. Today, most are open to all Australians and manage a significant portion of the nation’s $3.7 trillion superannuation pool. Their key selling points have traditionally been:

• Low fees: Profits are returned to members, not shareholders.
• Strong investment performance: Many have consistently outperformed retail funds over the long term.
• Simple, default options: MySuper products offer straightforward, value-for-money investment strategies.

In 2025, these features remain, but there’s more scrutiny from regulators and members alike. The Australian Prudential Regulation Authority (APRA) has expanded its annual performance test to cover more products, increasing pressure on funds to deliver consistent results or face closure to new members.

2025 Policy Updates and Their Impact

This year, the government has rolled out several superannuation policy updates that directly impact industry funds:

• Expanded Performance Testing: APRA’s 2025 extension now covers trustee-directed products and not just MySuper. Industry funds must ensure all investment options meet the performance benchmark, or risk being named and shamed on the ATO’s YourSuper comparison tool.
• Fee Transparency: ASIC’s new ‘super fee dashboard’ launched in March 2025, making it easier for members to compare total fees across all funds. Early analysis shows most industry funds remain among the lowest-cost providers, but some have had to adjust administration fees upward to cope with regulatory costs.
• Insurance Overhaul: Several large industry funds, including AustralianSuper and HESTA, have revamped their default insurance offerings in response to new rules requiring more tailored cover and clearer opt-out pathways.

These changes mean industry funds are under more pressure to justify their value—not just through low fees and good returns, but also transparency, member engagement, and robust insurance offerings.

Performance Trends: Who’s Leading the Pack?

The investment environment in 2025 has been challenging, with global equities facing volatility due to inflationary pressures and geopolitical uncertainty. However, some industry funds continue to outperform. For example:

• AustralianSuper’s Balanced Option delivered a 7.2% return (net of fees) for the 2024-25 financial year, outpacing the median retail fund at 6.3%.
• Hostplus Indexed Balanced remains a favourite for fee-conscious investors, with total annual fees under 0.08% and a five-year average return of 6.7%.
• REST Super, with its strong focus on younger workers, has introduced new ESG investment options in line with rising demand for sustainable super products.

But not all industry funds are equal. APRA’s 2025 performance test flagged several mid-sized industry funds for underperformance, prompting some to consider mergers with larger, better-performing funds. The trend of consolidation continues as funds seek greater scale and efficiency.

Should You Switch to—or Stay With—an Industry Fund?

If you’re already with an industry fund, 2025 is a good year to review your current product. Check your fund’s performance on the ATO’s YourSuper tool, compare total fees using the new ASIC dashboard, and consider how well your fund’s investment mix and insurance match your personal needs.

For those considering a switch, key questions to ask include:

• Is the fund passing APRA’s performance test year after year?
• Are fees among the lowest in the market for similar products?
• Does the fund offer investment and insurance options that suit your stage of life?
• Are member services (like financial advice and digital tools) up to scratch?

Remember, switching super is now easier than ever—most funds offer a digital rollover process that can be completed in under 10 minutes.

The Bottom Line: Industry Funds Remain Competitive, But Choice Matters

Industry super funds in 2025 still offer some of the best value for Australian retirement savers, especially for those looking for low fees and strong, long-term returns. However, new regulations and greater transparency mean members need to stay proactive—comparing performance, checking fee structures, and making sure their fund aligns with personal goals. The industry fund label is no longer a guarantee of top value, but for many Australians, it’s still a smart starting point.