What is the difference between public offer and non-public offer superannuation funds?

Some superannuation funds are available for all Australians to join. These are known as public offer funds. Funds that are exclusively available to certain groups of individuals, such as workers in a particular industry or employees of one specific company, are referred to as non-public offer funds. 

Public offer funds

As the name suggests, a public offer fund is a superannuation fund that can be joined by members of the public.

Public offer funds are monitored by the Australian Prudential Regulation Authority (APRA) and consist of pooled superannuation interests sold to the public on a commercial basis.

Retail super funds

Retail funds run by banks and other financial institutions, such as Commonwealth Bank, ANZ, Westpac, and more. They help to generate profits for shareholders. They tend to come with a wide range of investment options but may be recommended by financial advisors being paid commissions or fees.

Industry super funds

Industry super funds were first established in the 1980s to protect Australian workers within certain industries from the types of fees and commission-based products found in retail super funds. Industry super funds do not pay commissions or incentives to financial advisers. Anyone can join the larger industry funds, while some smaller industry funds are exclusively available for those working within certain industries.

Self-managed super funds (SMSFs)

A self-managed super fund (SMSF) is a superannuation account designed to provide individual’s complete control over the investment strategy of their funds. You’re allowed no more than six members, who must all be trustees. SMSFs have similar benefits to the professionally managed funds listed above, such as concessional tax rates.

Non-public offer funds

A non-public offer fund is a super fund that has more than six members and membership is limited to employees of an employer or a group of employers.

Corporate super funds

Corporate super funds are organised by employers for their employees and may be a competitive draw for the organisation when trying to lure talent. These types of funds are generally kept available for current employees, their family members and ex-employees. Some corporate super funds may be managed by larger funds and come with a wider range of investment options.

Public sector super funds 

Also known as government super funds, public sector funds are superannuation funds set up for employees working in the public sector, such as employees of Australia's state or federal governments. These funds are generally not available to non-government employees, however, some government super funds have opened up to accept non-employee members.

Other types of funds

Self-managed super funds (SMSFs)

You may also choose to opt for a self-managed super fund (SMSF). This is a superannuation account that gives the individual complete control over the investment strategy of their funds. These types of funds can have no more than six members and all members must also be trustees. SMSFs have similar benefits to the professionally managed funds listed above, such as concessional tax rates.

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