Quick answer: The cheapest super options are index (passive) options from the big low-cost funds. On a $50,000 balance, the lowest total fees start at about $132 a year with AustralianSuper’s Indexed Diversified option and $149 a year with Hostplus Indexed Balanced — while the median default MySuper fund charges about $440 a year on the same balance. If you don’t want to pick investments yourself, the cheapest default funds include Vanguard Super, Vision Super and UniSuper. ASIC’s MoneySmart website explains how super fees work and is a good place to sense-check any fund.
Fees are the quiet leak in most super accounts. You never see a bill — the money just comes out of your balance — so a lot of people have no idea what they’re paying. This guide shows you the genuinely low-fee funds, what they charge on a typical balance, and the handful of things worth checking before you switch.
Why super fees matter more than you think
A fraction of a percent sounds like nothing. Over a working life, it isn’t. The Productivity Commission found that paying just 0.5% a year more in fees could leave a typical worker with about 12% less super at retirement — roughly $100,000.
The maths is easy to follow. On a $50,000 balance:
- A fund charging the MySuper median of 0.88% takes about $440 a year.
- A low-fee index option charging 0.30% takes about $149 a year.
- That’s roughly $290 a year that stays in your account instead — and then compounds for decades.
The gap gets bigger as your balance grows. On a $500,000 balance, the median actively managed growth option costs about $4,047 a year, while Hostplus Indexed Balanced costs about $329. Same market, wildly different fee bills.
The lowest-fee super options right now
Every option in this table is an index option. Index options simply track a market index — the ASX 200, global share markets, bond indexes — instead of paying fund managers to pick stocks. That’s exactly why they’re so cheap. Figures are the total of administration fees and costs, investment fees and costs, and transaction costs on a $50,000 balance, from Chant West research published in June 2026. Insurance premiums are extra and depend on your cover.
| Fund | Investment option | Total fees per year ($50,000 balance) | As % of balance |
|---|---|---|---|
| AustralianSuper | Indexed Diversified | $132 | 0.26% |
| Hostplus | Indexed Defensive | $139 | 0.28% |
| Hostplus | Indexed High Growth | $144 | 0.29% |
| Hostplus | Indexed Balanced | $149 | 0.30% |
| Essential Super | Balanced Index | $155 | 0.31% |
| Brighter Super | Indexed Balanced | $156 | 0.31% |
| Aware Super | Balanced Indexed | $162 | 0.32% |
| Australian Retirement Trust | QSuper Balanced Indexed | $162 | 0.32% |
| Median default (MySuper) fund, for comparison | Default option | ~$440 | 0.88% |
A few things to know about these options:
- Hostplus charges a flat administration fee of $78 a year ($1.50 a week) no matter how big your balance is. That flat fee is why its index options stay near the top of the table at every balance size.
- AustralianSuper’s Indexed Diversified is the cheapest single option on a $50,000 balance, at $132 a year. Its better-known Balanced option costs more — $367 a year on $50,000 according to the fund’s own fee example — because it’s actively managed.
- Index options leave the investment choice to you. You pick the option (Balanced, High Growth, and so on) and it stays that way until you change it. There’s no manager adjusting the mix for you beyond tracking the index.
Prefer a default fund? The cheapest MySuper options
If you’d rather stay in a default MySuper product — where the fund manages the investment mix for you — the cheapest defaults on a $50,000 balance, again from Chant West’s June 2026 data, are:
- Vanguard Super (SaveSmart lifecycle) — 0.56%, about $280 a year
- Vision Super (Saver Balanced Growth) — 0.62%, about $310 a year
- UniSuper (Balanced) — 0.64%, about $320 a year
- AustralianSuper (Balanced) — 0.73%, about $365 a year
UniSuper is worth a mention on admin fees alone: it charges $96 a year, or 2% of your balance if that’s lower — handy if your balance is small. Note that some cheap defaults, like Vanguard’s SaveSmart, are lifecycle products: they automatically shift you into safer investments as you get older.
How super fees are actually charged
Your annual statement bundles several different charges together. Here’s what they are:
- Administration fees and costs — the cost of running your account. Usually a flat dollar amount (for example $52 to $96 a year), a percentage of your balance, or both. AustralianSuper, for instance, charges $1 a week plus 0.10% of your balance, capped at $350 a year.
- Investment fees and costs — what the fund pays to manage your money, charged as a percentage of your balance. This is where index options win big: tracking an index costs a fraction of active stock-picking.
- Transaction costs — the fund’s costs of buying and selling investments, also a small percentage.
- Insurance premiums — if you have death, disability or income protection cover through your super, the premiums come out of your balance on top of the fees above. They vary a lot with age, occupation and cover level.
One protection worth knowing: if your balance is under $6,000, the total fees your fund can charge are capped at 3% of your balance for the year, with any excess refunded. It stops small accounts being eaten alive by flat fees — but once your balance grows past that, you’re on your own.
Low fees aren’t everything — check these too
Fees are the one thing you can know in advance, which is why they deserve attention first. But the cheapest fund isn’t automatically the right fund. Before switching, check:
- Net returns, not headline returns. What matters is the return after all fees are taken out. Look at 5- and 10-year net returns for the option you’re considering, not just last year’s number. The ATO’s free YourSuper comparison tool compares every MySuper product by net return and fees at your balance.
- The investment mix. Two options both called “Balanced” can hold very different amounts of shares and property. A cheap high-growth index option will swing around far more than a cheap conservative one — pick the risk level you can actually sit through.
- Your insurance. This is the big trap. If you close your old account, you lose the insurance attached to it, and the new fund’s default cover may be less, cost more, or come with waiting periods. Check both lots of cover before you move, especially if your health has changed since you first got the old cover.
- Whether you’ll actually stay. A low-fee index option only works if you leave it alone through market ups and downs. If watching your balance swing would panic you into switching at the worst time, a managed default may suit you better despite higher fees.
How to switch to a lower-fee fund
- Find out what you’re paying now. Your latest annual statement shows the total fees and costs deducted for the year. Divide that by your balance to get your percentage — if it’s well above 0.5%, there’s likely a cheaper option for you.
- Compare at your balance. Use the ATO’s YourSuper comparison tool for defaults, and each fund’s PDS fee example (always shown on a $50,000 balance) for index options.
- Check your insurance in your current fund and what the new fund offers, as described above. If you need the old cover, you may be able to keep that account open with a small balance — get advice if it’s complicated.
- Join the new fund online. You’ll need your tax file number. Funds can’t charge exit fees, so leaving your old fund costs nothing.
- Roll your money over. Your new fund can usually pull your old balance across for you, or you can consolidate accounts through ATO online services in myGov.
- Tell your employer. Give them your new fund’s details — most employers use the super standard choice form — so future contributions go to the right account. Without this step, your pay keeps landing in the old fund.
- Confirm the old account is empty and closed, so it stops charging you admin fees and insurance premiums.
Frequently asked questions
What counts as a low fee for super?
On a $50,000 balance, total fees under about 0.50% a year ($250) are low, and the cheapest index options sit between 0.26% and 0.32%. The median default fund charges 0.88%, so anything near or above 1% deserves a hard look.
Are index super funds a good idea?
They’re a reasonable choice for many people: very low fees, broad diversification, and returns that match the market rather than trying to beat it. The trade-off is that nobody is steering — your option rises and falls with the market, and you choose the risk level yourself. Past performance is not a guide to future performance.
Do the fees in the table include insurance?
No. The figures cover administration, investment and transaction costs only. Insurance premiums through super are charged on top and depend on your age, occupation and how much cover you hold.
Can my employer refuse to pay into my chosen fund?
Generally no — most employees can choose their fund, and your employer must pay into it once you’ve given them the details. Your existing fund is also “stapled” to you, meaning it follows you between jobs unless you actively choose a different one.
Will switching funds hurt my retirement savings?
Switching itself is free of exit fees, and your money is usually out of the market only briefly during the transfer. The real risks are losing insurance cover you need, or switching into an option with a risk level that doesn’t suit you. The fee saving, by contrast, is locked in every single year.
This article is general information only and is not personal financial advice. It has been prepared without considering your objectives, financial situation or needs. Super fees and investment returns change over time — check the fund’s current product disclosure statement before making a decision, and consider speaking with a licensed financial adviser about your own circumstances.
