APRA’s performance test: Platforms continue to miss the mark

Results for APRA’s annual superannuation fund performance test were released at the end of August, and the verdict was almost overwhelmingly positive.

For the second year in a row, all MySuper options and non-platform choice products passed the test; for choice options offered via platform services, the result was less positive but demonstrated a significant improvement from 2024.

Choice options need to be actively selected, while MySuper is the default option you will be placed in if you don’t choose an alternative.

Platform services provide access to a wide range of investment options but are known for being expensive, which can put a drag on returns. In 2025, 5% of the choice platform products tested failed, a significant improvement from the almost 20% failure rate in 2024.

The Australian Prudential Regulation Authority (APRA) says the test is intended to hold super trustees to account for underperformance through greater transparency and increased consequences. Failed products are usually closed entirely, with any remaining member balances moved to alternatives, an indication the test appears to be having the intended effect. However, critics point out that while the test applies to more than 80% of total superannuation assets in the accumulation phase, only a small fraction of platform products are covered, and retirement phase investments (superannuation pensions) are not tested at all.

How the annual performance test works