Super Fund Trustee Duties 2026: Key Updates for Australian Super Members

A super fund trustee is the individual or group legally responsible for managing the super fund in the best interests of its members. This includes both large APRA-regulated funds and SMSFs, where the trustees are often the fund members themselves. In both cases, trustees have a fiduciary duty to act honestly, prudently, and in good faith, following strict regulations set by the Australian Prudential Regulation Authority (APRA) and the Australian Taxation Office (ATO).

This year, several legislative and regulatory updates have sharpened the focus on trustee responsibilities, transparency, and member outcomes. Here’s what’s new:

• Enhanced Performance Testing: From 1 July 2026, APRA’s performance benchmarking now covers a broader range of super products, putting more pressure on trustees to justify investment strategies and fees. Underperforming funds face tougher consequences, including public disclosure and restrictions on accepting new members.

• Stricter Disclosure Obligations: Trustees must provide clearer, more timely information about fund performance, investment risks, and insurance arrangements. This aims to empower members to make informed choices and compare funds easily.

• Heightened Director Accountability: Trustees and directors now face personal liability for breaches of duty, especially regarding conflicts of interest and non-compliance with fund rules. The ATO and APRA have both stepped up enforcement, with higher fines and the potential for disqualification from managing funds.

• Climate and ESG Reporting: Funds with over $5 billion under management must report on climate risks and their approach to responsible investment, following new APRA guidelines. Trustees are expected to actively manage and disclose environmental, social, and governance (ESG) risks.

Trustees do more than just tick compliance boxes. Their day-to-day and strategic responsibilities directly impact how your super grows and is protected:

• Investment Management: Trustees set the fund’s investment strategy, monitor performance, and rebalance assets to meet member needs while managing risk. In 2026, they must also consider climate and ESG risks in their decision-making.

• Fee Oversight: Trustees are responsible for ensuring fees and costs are reasonable and deliver value to members. The expanded performance test means funds with high fees and low returns are under the microscope.

• Insurance Arrangements: Trustees decide what types of insurance (like life, TPD, and income protection) are offered through the fund, and at what cost. Recent law changes require clearer communication with members about insurance options and exclusions.

• Member Communications: Trustees must keep members informed with annual statements, significant event notices, and up-to-date online dashboards, making it easier to track performance and fees.

• Compliance and Risk Management: Trustees must ensure the fund complies with all relevant laws, trust deed rules, and APRA/ATO guidelines, including anti-money laundering and privacy requirements.

Case 1: Performance Test Fallout

In 2024, a major retail super fund failed the APRA performance test. Its trustees had to notify members, freeze new sign-ups, and overhaul investment options—demonstrating how trustee actions (or inaction) can have immediate consequences for thousands of Australians. Case 2: SMSF Trustee Liability

An SMSF trustee invested heavily in a single property development that collapsed. In 2026, the ATO fined the trustee for failing to diversify investments and breaching the sole purpose test. This highlights the personal risks SMSF trustees face if they don’t follow the rules. Case 3: ESG and Climate Reporting

A large industry fund launched a new sustainable investment option in response to APRA’s 2026 climate risk guidelines. Trustees reallocated assets to reduce exposure to fossil fuels, boosting member engagement and attracting new contributions from climate-conscious savers.

As a super fund member, you have rights and avenues for raising concerns if you believe trustees are not acting in your best interests. These include:

• Requesting information about how your fund is managed

• Attending annual member meetings (now mandatory for most funds)

• Lodging complaints through the fund’s internal dispute process or escalating to the Australian Financial Complaints Authority (AFCA)

• Reviewing published fund performance data and trustee disclosures

Trustees are the gatekeepers of Australia’s $3.7 trillion superannuation system. In 2026, tighter rules and greater transparency are reshaping how they manage your retirement savings. By understanding the trustee’s role, you can better protect your super, make informed fund choices, and demand accountability for your financial future.