How to change super funds

Changing super funds at a glance

1. Compare your current account with suitable alternatives.
2. Check insurance, valuable benefits and any tax deduction paperwork.
3. Open the new account and choose your investment option.
4. Give your employer the new contribution details.
5. Arrange to transfer all or part of your balance.
6. Check the transfer, contributions and account settings.

A rollover moves money already in your super account. You also need to tell your employer where to send future contributions. Transferring your balance does not automatically update your payroll details.

Step 1: Compare your current fund with alternatives

Start with your latest statement and your current investment option. Identify what you want to improve: fees, investment choices, insurance or service. You may be able to resolve the issue within your existing fund. Take time to check any recommendation to switch, particularly if someone contacts you unexpectedly or promises unusually high returns.

Compare like for like. A high-growth option and a conservative option take different risks, so their returns alone cannot tell you which is more suitable. Even two options called balanced may hold different proportions of shares, property, fixed interest investments such as bonds, and cash.

Compare each fund over the same periods, such as 1, 3 and 5 years, and include 10-year results where available. Give more weight to longer-term results when comparing options with similar risk levels. Check which fees and taxes have already been deducted from the returns shown. Past performance is not a reliable indicator of future performance.

Compare total costs on your own balance, including administration fees, investment fees and costs, transaction costs and any advice charges. Check insurance premiums separately. A low headline administration fee does not tell you the whole cost.

For example, a hypothetical fee of $100 plus 0.5% a year would be $600 on a $100,000 balance, before other costs. Use the same balance and cost categories for each fund.

Use our super fund comparison page to shortlist accounts. Check that the figures are current and apply to the account and investment option you’re considering. For more help, read Moneysmart’s guide to choosing a super fund.

The ATO’s YourSuper comparison tool is another starting point. It compares MySuper products, which are commonly used as default options; it does not compare every investment option or decide which insurance suits you.

Compare before you switch

Use this worksheet to compare the accounts side by side. Add the date and source of each figure.

Enter your figures below, then print your completed comparison to keep a copy. Entries are not saved when you leave this page.

Step 2: Check what you could lose before transferring

Protect insurance you still need

Your existing account may include life insurance, total and permanent disability insurance (TPD), or income protection. Check the amount of cover, premium, exclusions and eligibility conditions. For income protection, also compare the waiting period before payments start and the period for which benefits can be paid.

If you need replacement cover, confirm that it has been accepted and is in force before cancelling existing insurance or closing the old account. Opening an account does not necessarily mean your insurance has started. Medical history or occupation can affect the terms offered.

Default insurance may not start automatically for a new member under 25 or with a balance below $6,000, although exceptions apply. Ask the new fund whether you’re covered and when cover starts.

Leaving a small balance does not guarantee cover continues. Premiums and fees can reduce the balance, and inactivity rules can end insurance. Cover generally ceases after 16 months without contributions unless you choose to keep it; fund conditions also matter. Before relying on a partial rollover to retain cover, ask your old fund what balance you need and whether you must keep making contributions or formally request continued cover. Get its requirements in writing.

Check special benefits and planned deductions

Some employers offer additional contributions or benefits tied to a particular fund. Defined benefit accounts may also provide benefits you cannot recover after leaving. Check these arrangements before transferring and get personal advice where needed.

If you made personal contributions and intend to claim a tax deduction, submit a valid notice of intent and obtain the fund’s acknowledgement before rolling money out. A full rollover can prevent a later notice from being valid, while a partial rollover can reduce the amount you can claim. Other notice deadlines still apply.

Get advice before moving an existing pension, untaxed benefits or a self-managed super fund. These can involve additional tax rules and transfer requirements.

Step 3: Open the new account

Apply directly with your chosen fund. Have your identification, contact details and tax file number available, and follow its identity-check process. Read the Product Disclosure Statement (PDS), which explains the product’s features, risks and costs, and the Target Market Determination (TMD), which describes the intended type of customer.

Choose the investment option you want your money invested in. Check how both transferred money and future contributions will be invested. Ask the fund when any insurance you arrange will start and what conditions apply.

Some applications offer to transfer your old super immediately. Complete the insurance, benefit and deduction checks in Step 2 before agreeing to that transfer.

Save your membership number and contribution details. Make a new beneficiary nomination with the receiving fund to tell it who you want to receive your super when you die. Check who you can nominate and the requirements for making the nomination valid.

Tax may apply to the taxable component of a lump-sum death benefit paid to someone who is not a dependant for tax purposes, such as a financially independent adult child. Consider the tax implications when making your nomination. Read more about who gets your super if you die.

Step 4: Tell your employer where to pay your super

Use your employer’s fund-choice process or the ATO superannuation standard choice form. For a typical industry or retail fund, have these details ready:

• Your name and member number.
• The fund’s name and Australian business number (ABN).
• The product’s unique superannuation identifier (USI).
• Any supporting information the form requires, such as the fund’s compliance letter.

Get the details directly from the new fund’s contribution or employer information. A fund can have more than one product, so check the USI carefully.

Ask payroll when the change will take effect and check the receiving account after payments are due. If you have more than one employer, update each one. Also review any salary-sacrifice instructions and personal contribution arrangements.

Most employees can choose a fund, but exceptions apply. If you have already chosen a fund in the past 12 months, your employer generally does not have to accept another change, although it may agree to do so. Check with payroll. This is separate from transferring your existing balance.

Step 5: Transfer your existing super

Choose whether to move the whole balance or only part of it. Moving the whole balance will usually close the old account and end benefits attached to it.

How to change super funds through myGov

For an eligible whole-account transfer:

1. Sign in to myGov and open the linked Australian Taxation Office service.
2. Select Super, then Manage, then Transfer super.
3. Choose the account to transfer from and the account to receive the money.
4. Check the account details and consequences before submitting.
5. Keep the confirmation and check progress with the funds.

The receiving account must already exist. If it is missing or the transfer option is unavailable, contact the fund for help. The ATO’s transfer guidance has more information.

Asking your fund to arrange the rollover

You can ask the receiving fund to arrange a transfer. Provide the old account details and complete any identity requirements. To move only part of your balance, request a partial transfer directly with your fund. The ATO’s online transfer service is for whole balances.

If you retain the old account, confirm its minimum balance and ongoing costs. Keep monitoring any insurance you intend to retain.

How long does it take to change super funds?

A standard rollover is generally required within three business days once the fund has the necessary information and applicable requirements are met. Exceptions can apply, including some illiquid investments, which cannot readily be sold. The overall switch may take longer because opening an account, completing identity checks, arranging insurance and updating payroll are separate processes.

Ask both funds about expected timing. Money may spend some time out of the market during the transfer, so market movements can affect the outcome. Follow up with the fund if the expected timeframe passes.

Step 6: Check everything has moved correctly

Use this checklist once the transfer is processed:

• The receiving fund shows the rollover and you have retained the confirmation.
• Your money is in the investment option you selected.
• Employer contributions arrive in the intended account.
• Any personal payments and salary-sacrifice arrangements use the correct details.
• Insurance you need is confirmed as active, with the agreed terms.
• Your beneficiary nomination and contact details are recorded.
• The old account is closed if intended, or its balance and ongoing cover are being monitored.

If the amount transferred differs from what you expected, ask the funds to explain why. Market movements, premiums and costs may affect the final balance. Keep statements and correspondence so you can query missing payments or incorrect settings.

Start with our super fund comparison page, then confirm the details with each fund. If you need advice about your circumstances, speak with a licensed financial adviser before making a decision.

Frequently asked questions

Does changing super funds cost money?

Super fund exit fees have been banned since 1 July 2019. However, a transfer may still involve buy-sell spreads or other investment transaction costs, depending on the product. A buy-sell spread reflects costs of buying or selling investments. Check both funds’ current disclosures and ask about any costs of selling particular holdings.

Will I lose insurance when I change super funds?

You may lose cover when the old account closes. Confirm replacement cover before requesting a full rollover if you still need insurance. Keeping an account open requires ongoing attention to its insurance conditions; a leftover balance alone is not enough.

Can I change super funds at any time?

You can generally request a rollover, subject to the account’s rules and transfer requirements. Choosing where an employer pays future contributions is a separate process. Check the eligibility and repeat-choice rules in Step 4, especially if you have already changed your nominated fund in the past 12 months.

Can I transfer only part of my super?

Generally, yes, subject to the fund’s rules and any minimum balance. Arrange a partial rollover directly with the fund. Consider the ongoing fees, insurance premiums and administration involved in maintaining two accounts.

Do I need to change super funds when I change jobs?

Usually, no. You can generally give the new employer your existing fund details. If you do not choose a fund, your employer may need to use your stapled super fund, an existing account linked to you, rather than create another account. Some employment arrangements have different requirements. Read about stapled super funds.

Is a super rollover taxable?

An ordinary rollover between taxed Australian super funds generally does not create a personal income-tax bill simply because you switch. Untaxed benefits and other special arrangements can have tax consequences, and selling investments within a fund can affect the amount transferred. The name of a product, such as a wrap account or SMSF, does not by itself determine the tax outcome. Check the ATO’s transfer guidance and ask the fund you’re transferring from about your account. If you’re transferring from an SMSF, also speak with your accountant or financial adviser.

Should I switch to last year’s best performing fund?

A single year is a poor basis for choosing a long-term investment. Compare similar risk levels over longer periods, alongside costs, insurance and your needs. Reviewing your account regularly does not mean you need to change funds every year.

About the author

Tom Foreman

Financial adviser and editor of Review My Super

Tom has worked as a financial adviser since 2013, primarily advising on retirement planning and superannuation.

Learn more about Tom at Foreman Financial Group