The Capital Bite

This super fund couldn't beat the cash rate means that a particular Australian superannuation fund has failed to achieve returns higher than the current Reserve Bank of Australia (RBA) cash rate, which is a benchmark for interest rates in the country. This underperformance suggests that the fund's investment strategy or management may be subpar, and it may face scrutiny from regulators and investors. The RBA cash rate has been low for several years, making it challenging for funds to generate returns above this level.

Australian expat Cameron Smith, who has lived in Switzerland for nearly 20 years, discovered $180,000 was missing from his superannuation fund after it was consolidated into a holding account called YourChoiceSuper, operated by Diversa Trustees. The consolidation was facilitated by financial advisor Nizi Bhandari, who was later charged with unlicensed advice and dishonesty offences by ASIC. Smith's case highlights the risks of dormant superannuation funds being exploited, with his money invested in First Guardian, which collapsed for $1.1 billion. Smith's experience began when he tried to withdraw his funds from Diversa, only to find that it had been transferred to a new financial advisor, Ferras Merhi of Venture Egg Financial Services Pty Ltd, who is accused by ASIC of engaging in unconscionable conduct and providing defective statements of advice.

Nearly half of Australians (45%) are unaware of their super fund's investment performance, which could cost them tens of thousands of dollars by retirement. Experts warn that checking one's super fund's performance is a simple task that can make a significant difference, with MLC Super modelling showing a 30-year-old could be more than $200,000 better off at retirement if in a fund delivering an 8% per annum return compared to a 7% return. The warning comes as most super funds report their 2026 financial results, with the average growth fund returning 9.5% over the past 12 months, led by UniSuper's 12.3% return. Annual statements are arriving soon, providing an opportunity for Australians to review their super fund's performance and make informed decisions. With some funds posting double-digit returns, experts urge Aussies to check their own fund's performance and consider switching if necessary.

The Australian headline 'Sounding the shark alarm over superannuation safety' suggests that concerns have been raised about potential risks to members' savings in Australia's superannuation system, with regulators or industry insiders warning of vulnerabilities similar to those exploited by financial planners who engaged in egregious misconduct. This could be related to issues such as inadequate governance, regulatory gaps, or poor oversight. The article implies a sense of urgency and alarm.

A financial adviser has shared an example of how making extra superannuation contributions through salary sacrifice can save $3,480 in tax for someone earning $150K per year. The cap on these contributions is $32,500 this financial year, and the adviser suggests setting up a payroll arrangement to make the most of it. Additionally, moving money from a savings account to a mortgage offset can save $885 per year, and setting up tax deduction records in July can also reduce taxable income.

UniSuper was the top-performing superannuation fund in Australia last financial year, achieving a return of 12.3 per cent. This marks the fourth consecutive year that returns have exceeded 9 per cent, resulting in a cumulative four-year return of 44 per cent for many Australians. The boom in listed technology stocks in both the US and emerging markets contributed to this strong performance. Investment chiefs expect the momentum to continue. The top-performing superannuation funds in the 'growth' category achieved returns as high as 12.3 per cent, with UniSuper leading the way.

The Labor party has backed a motion to mandate superannuation payments for workers under the age of 18, regardless of hours worked. Over half a million young Australians could benefit from this change, which could see their retirement nest eggs boosted by millions. This move follows the government's new Payday Super laws, which repealed sections of the law excluding workers under 18 working fewer than 30 hours per week from being entitled to super guarantee, but then put these exclusions back into law using ministerial discretion powers. Labor voted against a Greens' push in the Senate to stop this exclusion, but Treasurer Jim Chalmers left the door open for the superannuation change. Super Members Council analysis found that under 18s missed out on $405 million in super contributions over the last financial year alone.