An industry super fund is a type of not-for-profit superannuation fund originally created to serve workers in specific industries. Unlike retail super funds, which are run to generate profits for shareholders, industry super funds return profits to members through lower fees and investment growth. Over time, many of these funds have opened membership to the general public, not just industry workers.
Industry super funds pool contributions from employees and employers, then invest the money into a diversified portfolio that can include shares, property, bonds, and infrastructure. Their focus on low fees, long-term investment strategies, and member outcomes has made them a popular choice in Australia’s retirement savings system.
Advanced
Technically, industry super funds are structured as mutual organisations, where trustees have a duty to act in the best interests of members. They are regulated under superannuation laws and supervised by bodies such as APRA and ASIC. Industry funds often invest heavily in large-scale projects like infrastructure, which can deliver strong, stable returns over time.
They are also known for their default “MySuper” products, which offer simple, low-cost options for employees who do not choose their own investment strategy. Performance and fees are benchmarked annually, with results published to maintain transparency and accountability.
Relevance
- Provides Australians with low-fee, member-focused retirement savings options
- Competes with retail super funds, improving overall industry standards
- Supports investment in national infrastructure and long-term projects
Applications
- Employees contributing superannuation through their workplace fund
- Employers meeting SG obligations by paying into industry funds
- Members accessing default MySuper products or tailored investment options
- Retirees drawing income streams from their accumulated balances
Metrics
- Net returns delivered to members over 5–10 year periods
- Fee levels compared to retail and self-managed funds
- Member satisfaction and retention rates
- APRA performance test results for MySuper products
Issues
- Performance can vary between funds despite “industry” branding
- Limited investment choice compared to retail or self-managed options
- Members who do not engage may remain in default strategies unsuited to their goals
- Public debates about governance and union influence have raised scrutiny
Example
A construction worker joins an industry super fund through their employer. Over 30 years, their contributions are invested in a diversified portfolio, including infrastructure projects. The low fees and strong long-term returns help the worker build a substantial retirement balance, without needing to actively manage investments.
