Choosing a Super Fund as a Freelancer: What Actually Matters

When you were an employee, your super fund was probably chosen for you. Maybe you picked one from a list during onboarding. Maybe you just ended up in the company default and never thought about it again.

Now that you're freelancing, you're making voluntary contributions, which means the fund you're in matters. Fees compound over decades, and the difference between a high-fee fund and a low-fee fund can be six figures by retirement.

The good news: this isn't a decision you need to agonise over. Pick a low-fee fund that makes contributions easy, and move on with your life.

What actually matters when choosing a fund

1. Fees

Fees are the single biggest factor in your long-term super outcome.

A fund charging 1.5% per year versus one charging 0.5% doesn't sound like much. But on a $200,000 balance over 25 years, that 1% difference costs you roughly $100,000 in lost returns.

Super fund fees come in two parts:

• Administration fee: a flat dollar amount per year (or per month) for running your account. Ranges from $0 to $100+/year
• Investment fee: a percentage of your balance charged for managing the investments. Ranges from 0.05% (index funds) to 1.5%+ (actively managed)

The total combined fee is what matters. Aim for under 1% total, and ideally under 0.7%.

2. Investment performance (net of fees)

Past performance doesn't guarantee future returns, but it does tell you something about how a fund manages money over long periods. Look at 10-year returns net of fees, not 1-year returns. Short-term performance is noise.

The ATO publishes a comparison tool called YourSuper that shows fees and returns for MySuper (default) products. It's a good starting point.

3. Ease of making voluntary contributions

This matters more for freelancers than employees. You need a fund that makes it easy to:

• Make BPAY contributions (most do)
• Submit your Notice of Intent online, not through a paper form you have to print and mail
• Track your contributions and available carry-forward space
• Process contributions fast enough to meet the EOFY deadline. Some funds are slow in June, and slow costs you money

If your fund makes you mail a paper form every time you want to claim a deduction, that friction might mean you forget. Forgetting the Notice of Intent costs you thousands.

What doesn't matter as much

Brand name

A well-known name doesn't mean better performance or lower fees. Some of the best-performing, lowest-fee funds are industry funds that don't advertise on TV.

Insurance inside super

Most super funds include default life insurance and income protection. As a freelancer, you might want insurance, but buying it through super means it's paid from your super balance, reducing your retirement savings. Consider whether a separate policy (which is tax-deductible as a business expense) makes more sense for your situation.

Number of investment options

Unless you're actively managing your super investments, you don't need 50 options. A solid balanced or growth option is enough for most people. The returns difference between the "best" and "second-best" option within a fund is usually tiny compared to the fee differences between funds.

Popular funds for freelancers

These aren't recommendations. Your choice depends on your situation. But these funds consistently rank well on fees, performance, and usability for self-employed members:

Industry funds

• AustralianSuper is the biggest fund in the country, with low fees and strong long-term performance. Online contributions and Notice of Intent submission are straightforward.
• Hostplus started as the hospitality workers' fund but is open to everyone. The standout here is their index fund options, with investment fees as low as 0.02%.
• REST offers competitive fees and a solid digital experience. Originally built for retail employees, now open to all.
• UniSuper has a long track record of strong performance and a wider range of investment options than most. Started in universities, open to everyone now.

Retail/direct funds

• Vanguard Super takes a pure index fund approach with very low fees (0.27% for the lifecycle option). You don't get many investment options, but if you want simple and cheap, this is it.
• Spaceship Super is the newer player, popular with tech-savvy freelancers. The app is good and fees are low. Worth noting it's smaller and less established than the industry funds above.

SMSF (Self-Managed Super Fund)

Running your own super fund gives you complete control over investments. But it comes with significant compliance costs ($2,000-$5,000/year in accounting and audit fees) and legal responsibilities. It only makes sense if your balance is above $200,000-$300,000 and you want to invest in assets that mainstream funds don't offer (like direct property or specific shares). If you're earning above $250,000, you'll also want to factor in Division 293 tax regardless of which fund structure you choose.

For most freelancers, an industry or low-cost retail fund is the right choice.

How to compare funds

Step 1: Check your current fund

Log into your existing super fund and find:

• Your current total fees (admin + investment, as a dollar amount and percentage)
• Your 10-year return (net of fees)
• Whether you can submit Notice of Intent online
• Whether BPAY contributions are straightforward

Step 2: Compare with alternatives

Use the ATO's YourSuper comparison tool to see how your fund stacks up on fees and returns. Sort by fees to see the cheapest options, then check their returns.

Step 3: Focus on the gap

If your current fund charges 1.2% total and a comparable fund charges 0.5%, the 0.7% difference matters. If the difference is 0.1%, it probably isn't worth switching.

Use this rough guide: a 0.5% fee saving on a $100,000 balance saves you about $500/year in fees. Over 25 years (with growth), that compounds to roughly $50,000-$80,000 more at retirement. That's worth an afternoon of paperwork.

Step 4: Switch if it makes sense

Rolling your balance to a new fund is straightforward:

1. Open an account with the new fund
2. Provide your TFN. Without it, contributions are taxed at the highest rate
3. Request a rollover through the new fund's website or through myGov
4. Important: If you've made contributions you want to claim as deductions this year, submit your Notice of Intent to the OLD fund BEFORE rolling over

Consolidating multiple super accounts

If you've had several jobs, you probably have multiple super accounts, each one charging you fees. Consolidating into a single fund saves on duplicate admin fees and makes tracking contributions easier.

Check how many accounts you have via myGov (ATO > Super > Accounts and transactions). Then roll them all into your chosen fund.

Frequently asked questions

Can I have more than one super fund?

Yes, but there's rarely a good reason to. Each account charges its own administration fees, so you're paying duplicate fees on smaller balances. Consolidate unless you have insurance in an old fund that you want to keep.

Does it matter which fund I use for voluntary contributions?

The tax deduction works the same regardless of fund. But practically, you want a fund that makes BPAY contributions easy and lets you submit the Notice of Intent online. If your current fund makes you print and mail a paper form every time you want to claim a deduction, that friction adds up. You'll forget one year, and forgetting costs you thousands.

Should I switch funds just before making a large contribution?

Switch first, then contribute. If you contribute to Fund A and then roll over to Fund B, you need to submit your Notice of Intent to Fund A before the rollover. It's simpler to get set up in your preferred fund first, then start contributing. If you're doing this close to June 30, keep an eye on the EOFY super deadline to make sure your contributions land in the right financial year.

How often should I review my super fund?

Once a year is plenty. Check fees, glance at 10-year returns, confirm nothing has changed. Don't switch based on one bad year.

What happens to my super if I go back to employment?

Give your new employer your existing fund's details on the Super Choice form during onboarding. They'll contribute to it instead of their default. Your voluntary contributions as a freelancer and employer contributions as an employee all end up in the same account.