net benefit assumptions

Industry Super Australia have commissioned SuperRatings to undertake the research and modelling for use in some of its advertisements.

SuperRatings is a ratings, research and consulting company that specialises in analysing super funds, their investment returns, fees and the relative benefits they offer.

The Net Benefit Model, prepared by SuperRatings, calculates the variance in earnings and fees between HESTA and retail super funds (also known as retail master trusts), over different time periods, with the default comparison being the 15 years to 30 June 2021.


Sample set: the sample set used in the modelling contains HESTA and the retail super funds with a 5, 10 and 15 year performance history which are actively tracked by SuperRatings, including superannuation investment products that are open and those that are closed to new members but continue to hold assets.


Timeframe  5 yr 10 yr 15 yr
Retail super products  99 44 33
  • The model uses the ‘main Balanced option’ being the fund’s largest Balanced option where 60% to 76% of the fund’s assets are invested in growth investments. This is generally the fund’s default option. Where a fund does not have a Balanced option, the option closest to SuperRatings benchmark range of 60% to 76% growth investments is used. This is done for so for each product provider in the sample set.
  • The model uses return and fee data that is submitted by funds to SuperRatings, made publicly available by funds or contained within formal fund disclosures as at 30 June each year.
  • Using the starting account balance and salary, the contributions, earnings and fees are calculated using 30 June data each year to derive the closing account balance at the end of each year.
  • The closing account balance for the previous year is then used to calculate earnings and fees on the account in the following years with the process being repeated for each year of the comparison.
  • The net benefit for each product refers to the cumulative earnings less fees for the relevant comparison period.
  • The average net benefit of Industry SuperFunds is calculated by taking an average of all net benefit outcomes at the end of the comparison period for the 15 funds in the campaign.
  • The average net benefit of retail super funds is calculated by taking an average of all net benefit outcomes at the end of the comparison period for the retail products actively tracked by SuperRatings.
  • The net benefit is calculated for each product which has sufficient return and performance history information available over the entire comparison period. Where this information is not available, those products are excluded from the calculation. 
  • The model assumes no additional contributions or withdrawals over the relevant comparison period.
  • The model will be updated annually with 30 June figures (available in approximately October each year).
  • Modelling was performed on 14 October 2021 using data as at 30 June 2021.

Salary increase

3.5% per annum.

Investment returns 

Performance (Net Benefit) modelling is based on actual reported returns over the stated period.

When are investment returns credited to members’ accounts? 


Superannuation Guarantee Contribution 

The Superannuation Guarantee rate used for each year's calculation is in accordance with the Superannuation Guarantee (Administration) Act. The modelling assumes no salary sacrifice or voluntary contributions.

Contribution tax 


When are contributions assumed to be made? 

Quarterly in arrears (i.e. the first contribution is made 3 months after joining the fund).

When are fees assumed to be deducted? 


Tax rebate 

A tax rebate of 15% is assumed on fees deducted from members’ accumulation accounts.


2.5% per annum.


All fee information is taken from the sample funds’ product disclosure statements or other formal disclosures at the end of each year in the calculation. Contribution fees, entry fees, exit fees, additional adviser fees or any other fees charged are excluded from this model.


No deductions are made for insurance premiums.


Industry Super Australia Pty Ltd ABN 72 158 563 270 Corporate Authorised Representative No. 426006 of Industry Fund Services Ltd ABN 54 007 016 195 AFSL 232514.