Should you really move superfunds?

At this time of year, many people consider moving superfunds — especially if those end-of-year letters from the superfund are… disappointing, to say the least. Almost all superfunds are going to be showing red this year, but like all financial decisions, the choice to move superfunds should not be rushed.

Let’s look at five factors to consider when thinking about changing superfunds. In the end, you might realise your current situation isn’t as bad as you think.

First, define “bad”.

How bad was it, really? Australian shares, international shares, and international property were off by about 6.5%, while Australian property was down more than 11%. Fixed interest/bond markets were off between about 9% - 13%, and official cash returns were only just above zero.

True, market returns were terrible, but that isn’t your superfund's fault. All superfunds are in the same position here, so in a way, it doesn’t really matter what fund you’re with.

Considering all of that, the average superfund member will be in "balanced" or "moderate" funds. This has about 60% - 70% of your money in growth assets and 30% - 40% in defensive assets. Returns across the board were going to average around 10.5% for the year. So, if your fund did better than that, it actually performed above average.

Think long-term thoughts.

You’ve had one unfavourable year, but you should be focusing on the last five years (or longer) for an accurate return picture. Even with the most recent year dragging everything down, your previous five returns should average at least 4%. If your superfund is performing around that number, or even 2% lower, you're not in the worst-performing funds.

Don’t chase returns.

If you're researching other superfunds, don't get sucked into chasing returns just because one did comparatively well last year. This doesn’t mean they’ll perform well every year, which is why it’s important to consider long-term returns with your current fund (and others you’re thinking about).

Don’t dismiss insurance.

If you consolidate multiple superfunds, you’ve probably unknowingly cancelled a lot of important insurance at the same time. This is particularly dangerous if you need insurance. For example, if someone under the age of 55 or with dependents has health issues, they might not be able to get replacement insurance. So, please don't close any superfund before you've considered your insurance!

Investment options.

In your fund investigations, make sure there are a range of investment options. The more the better! You at least need enough to be aggressive with your investments in the future (if you want to be).

Want more superfund support?

If you go swapping funds hastily, you could end up in a worse position. The best way to explore your options and ensure you’re making an informed decision is by getting an expert opinion. That’s where we come in — contact us today.

< Older Post

Newer Post >

Need help with your accounting?

Find Out What We Do

In Your 50s? 10 Ways to Give Your Super a Boost Before Retirement

September 14, 2026

In your 50s and thinking about retirement? Discover 10 practical strategies to boost your super and get your retirement savings on track.

Buying Your First Home? 5 Government Schemes Worth Knowing About

September 14, 2026

Buying your first home? From deposit schemes to stamp duty concessions, here are 5 government schemes that could help you get into the market sooner.

The New $1,000 Work-Related Deduction: What Does It Mean for Your 2027 Tax Return?

September 14, 2026

A new way to claim work-related expenses is coming for the 2027 tax return — but there is an important catch. From 1 July 2026, eligible taxpayers can claim a standard deduction of up to $1,000 for certain work-related expenses, without having to substantiate each expense individually. Sounds simple enough. But before you assume you can claim $1,000 on top of everything else, there are a few things you need to know. The $1,000 Is the Maximum The new standard deduction is capped at $1,000. It is designed to cover certain common work-related expenses, such as work-related phone and internet, home office expenses, stationery and some travel expenses. You can't claim the $1,000 and then claim those same expenses again separately. If you have actual work-related expenses of more than $1,000, you can continue to claim your actual expenses under the existing rules, provided you meet the requirements and have the records to support them. Do I Still Need to Keep My Receipts? Yes: and this is where it is worth being organised. If you use the standard deduction, you don't need to substantiate the individual expenses covered by it. But if you think your actual work-related expenses could be more than $1,000, keeping your receipts and records throughout the year will allow you to claim your actual expenses instead. There are also some deductions that aren't covered by the standard deduction and can still be claimed separately if you are eligible. It's for Your 2027 Tax Return The new deduction applies from the 2026–27 financial year, so you won't use it for the tax return you are preparing now. It will first apply to your 2027 tax return, lodged from July 2027. Is the $1,000 a $1,000 Tax Refund? No. The $1,000 is a deduction from your taxable income. It doesn't mean you'll receive an extra $1,000 back from the ATO. The value of the deduction will depend on your individual tax circumstances. What Should You Do Now? The best thing you can do is keep track of your work-related expenses throughout the 2026–27 financial year. When it comes time to prepare your 2027 tax return, we can look at your circumstances and determine whether the standard deduction or claiming your actual expenses is likely to give you the better outcome. At Ascent Accountants, we can help you make sense of the new rules and make sure you're claiming the deductions you're entitled to: without claiming the same expense twice!