Super peak body ASFA welcomes the Treasurer’s proposals to update and strengthen the superannuation performance test, keeping its important consumer protections while unblocking potential investments that could help drive better returns for members.
“It’s crucial that in a compulsory system, we have a measure of performance. Five years after it was brought in, the performance test has done a great job. It’s now time to modernise it, to deal with some unintended consequences, and make it stronger.” said ASFA CEO Mary Delahunty.
The current test measures super fund performance against a fixed set of benchmarks. While it has successfully removed underperforming funds from the market, it has made some investments look artificially less attractive than they really are in a long-term context like super.
Modernising the performance test was a part of ASFA’s contribution at the Treasurer’s Economic Reform Roundtable last year.
“Our message to the Roundtable was clear. The performance test is an important consumer protection and modernising it can drive greater returns for members by allowing funds to pursue innovative investment strategies. The Treasurer heard that message, and this consultation is the result,” Ms Delahunty said.
“Modernising and strengthening the test could allow for greater investment in emerging assets. Assets that are not well covered by current benchmarks that drive strong long-term returns and can also align with national resilience efforts include energy, defence, agriculture and early-stage Australian venture capital,” Ms Delahunty said
ASFA research suggests Australians are supportive of the broader investment strategies a modernised performance test can present.
A nationally representative survey of more than 1,500 Australians conducted in 2025 found that 67 per cent support greater investment in key infrastructure such as transport, communications and utilities, and 59 per cent support increased investment in energy assets.
ASFA also remains open to exploring how the performance test could be extended to cover more superannuation products in a practical way.
ASFA will engage constructively with the consultation and looks forward to working with Treasury on reforms that can help deliver great returns for members and strengthen this important transparency measure in our system.
For further information, please contact:
Scott Roberts
ASFA Media Lead
mediaunit@superannuation.asn.au
About the Association of Superannuation Funds of Australia (ASFA)
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry, and the only industry body that represents all parts of the APRA-regulated system.
Our more than 100 members include retail, industry, corporate and public sector funds and their service providers. For over sixty years, ASFA has been the voice of super, advocating for a dignified retirement for all Australians. Through research, advocacy and collaboration, ASFA promotes efficiency, sustainability and trust in Australia’s world-class retirement income system.