What is a default super fund?
If you’re starting your first job or moving into a new one, it could be helpful to understand how a default super fund works.
02 Sept 2025
If you’re starting your first job or moving into a new one, it could be helpful to understand how a default super fund works.
What is a default super fund?
A default super fund, also known as an employer-nominated fund, is the superannuation fund into which your employer will make your super contributions if you do not nominate a fund of your own choosing.
How to choose your super fund when starting a new job
When you start a new job, your employer will usually give you a superannuation fund nomination form to fill out, allowing you to nominate which fund your employer should pay your super contributions into.
You might nominate a super fund you’ve already been contributing into, or choose a new fund for yourself after comparing super funds.
If you don’t nominate a super fund, an account will be created on your behalf with your employer’s chosen default fund.
Why do employers need a default super fund?
Every employer in Australia is obliged to make Superannuation Guarantee (SG) payments on behalf of eligible employees, and the default super fund (also called a MySuper product) is where those payments will go unless an employee has nominated a super fund.
Default super funds are intended to be simple, low-fee options, where an individual’s super is usually put to work in either a ‘single diversified’ or ‘lifecycle’ investment option that will be an appropriate place for their retirement savings.
An employer can select any industry or retail super fund as their default super fund, as long as it offers a MySuper account.
The role of a default super fund for employers
A default super fund helps employers with:
- Onboarding new employees, especially those without a stapled super fund or who do not nominate one
- Simplifying admin in regards to making super contributions
- Industry specific awards and agreements, which may set out particular ways in which superannuation must be paid.
Why does your choice of super fund matter?
There can be a significant difference in the performance, fees and insurance options of super funds, so it’s worth doing your research before joining one or leaving one super fund to join another.
Canstar’s expert researchers rate the super funds on our database based on a range of factors and recognise those offering outstanding value with a 5-Star rating. The ATO also offers a YourSuper comparison tool which:
- displays a table of MySuper products ranked by fees and net returns (updated quarterly),
- allows you to select and compare in more detail up to four MySuper products at a time,
- links you to a super fund’s website when you select a MySuper product from the table,
- can show your current super accounts alongside other MySuper products, if you access the personalised version through myGov
- and provides links to help you consolidate your super accounts.
The information displayed in this comparison tool is collated and supplied by the Australian Prudential Regulation Authority (APRA).
Can I transfer my super to a different fund?
If your super is currently held with a default fund and you’ve opened a new super fund account, you can apply to have your super transferred online by:
- Going to my.gov.au
- Logging in or creating an account
- Linking your myGov account to the ATO
- Selecting ‘Super’ and then ‘Manage’
- Selecting ‘Transfer super’.
Alternatively, you can ask your new super fund to consolidate the funds for you, or you can lodge a paper form with the fund you wish to transfer your super from. While you won’t be charged an exit fee for transferring your super, you may encounter buy/sell spreads or other investment-related transaction costs.
This article was reviewed by our Content Editor Alasdair Duncan before it was updated, as part of our fact-checking process.
Try our Superannuation comparison tool to instantly compare Canstar expert rated options.
