Super Fund Trustee Duties in 2026: What Australian Members Need to Know

A super fund trustee is responsible for managing the fund on behalf of its members. This role exists in all types of super funds, from large funds regulated by the Australian Prudential Regulation Authority (APRA) to SMSFs, where the trustees are often the members themselves. Trustees have a legal obligation—known as a fiduciary duty—to act in the best interests of members, manage risks, and comply with relevant laws and regulations.

Recent years have seen a series of changes aimed at improving transparency, accountability, and outcomes for super fund members. In 2026, several updates have come into effect:

Broader Performance Testing

Performance benchmarking now covers a wider range of superannuation products. Trustees must regularly review how their fund’s investments are performing compared to industry benchmarks. If a fund consistently underperforms, trustees may be required to notify members and could face restrictions on accepting new members.

Clearer Disclosure Requirements

Trustees are now required to provide more accessible and timely information about fund performance, investment risks, and insurance arrangements. This is intended to help members make informed choices and compare funds more easily.

Increased Accountability for Trustees and Directors

Trustees and directors face greater personal responsibility for breaches of duty, particularly around conflicts of interest and compliance with fund rules. Regulators such as APRA and the Australian Taxation Office (ATO) have increased their focus on enforcement, with higher penalties possible for non-compliance.

Climate and ESG Reporting

Large funds are expected to report on how they manage climate-related risks and their approach to responsible investment, following updated guidelines. Trustees need to consider environmental, social, and governance (ESG) factors in their investment decisions and disclose relevant information to members.

Trustees have a range of duties that directly affect your superannuation savings:

Investment Management

Trustees set the fund’s investment strategy, monitor performance, and adjust asset allocations to balance risk and return. They must consider the needs of all members and, for larger funds, take into account climate and ESG risks as part of their decision-making.

Fee and Cost Oversight

Trustees are responsible for ensuring that fees and costs are reasonable and provide value for members. With expanded performance testing, funds with high fees and low returns are under closer scrutiny.

Insurance Arrangements

Trustees decide what types of insurance—such as life, total and permanent disability (TPD), and income protection—are offered through the fund, and at what cost. Recent changes require trustees to communicate insurance options and exclusions more clearly to members. For more information about insurance options, you can refer to insurance brokers.

Member Communication

Trustees must keep members informed through annual statements, significant event notices, and online dashboards. This helps members track fund performance, fees, and any important changes affecting their super.

Compliance and Risk Management

Trustees are required to ensure the fund complies with all relevant laws, trust deed rules, and regulatory guidelines. This includes obligations around anti-money laundering, privacy, and the sole purpose test (ensuring the fund is maintained for retirement benefits).

While the work of trustees can seem distant, their decisions have real-world consequences for members. Here are some general examples:

• Performance Test Outcomes: When a fund fails performance benchmarks, trustees may need to notify members, review investment strategies, and make changes to improve outcomes. This can affect the fund’s ability to accept new members and may prompt changes to investment options.

• SMSF Trustee Responsibilities: SMSF trustees who do not follow diversification rules or breach their legal duties can face penalties. For example, investing too heavily in a single asset or failing to act in the best interests of all members can lead to regulatory action.

• ESG and Climate Reporting: Trustees of large funds may introduce new investment options or adjust existing strategies in response to updated climate risk guidelines, reflecting a growing focus on responsible investment.

As a super fund member, you have several ways to stay engaged and hold trustees accountable:

• Request Information: You can ask your fund for details about how it is managed, including investment strategies and insurance arrangements.
• Attend Member Meetings: Many funds now hold annual member meetings, providing an opportunity to ask questions and hear directly from trustees.
• Use Dispute Processes: If you have concerns about how your fund is managed, you can use the fund’s internal complaints process or escalate issues to the Australian Financial Complaints Authority (AFCA).
• Review Published Information: Trustees are required to publish fund performance data and disclosures, which you can review to assess how your fund is performing.

Trustees play a central role in managing Australia’s superannuation system. In 2026, new rules and greater transparency are shaping how trustees operate and how your retirement savings are managed. By understanding trustee duties and staying informed, you can make better decisions about your super and help ensure your interests are protected.