What is an Industry Super Fund?

For years, industry super funds have been marketed as the sensible, low-cost option – the super funds “run only to benefit members,” with strong long-term returns and fewer fees than many retail funds. On paper, that sounds like an easy choice. If they’re cheaper, simpler, and consistently perform well, why doesn’t everyone just sign up to an industry fund?

Where Industry Funds Come From

Industry super funds began as workplace funds for specific sectors – construction, health, hospitality, education, and so on. Workers in a particular industry would have their super paid into the fund attached to their award. Those funds were usually not-for-profit, meaning they didn’t pay dividends to shareholders and instead returned profits to members through lower fees.

Over time, these funds grew enormous. AustralianSuper, Hostplus, Rest, CBUS, HESTA – their combined membership covers millions of workers and billions in invested assets.

Can anyone join an industry fund? Yes – almost always

Most industry funds have opened their doors to the general public. You don’t need to be a builder to join CBUS, or a nurse to join HESTA, or a hotel worker to join Hostplus.

Originally, membership was restricted. Today, open-membership is the norm because:

• It increases fund size (bigger funds negotiate better deals and run investments more efficiently)
• Awards no longer force employers to use a particular fund
• Competition across the super sector is encouraged by regulators

There are a few exceptions – small specialist funds may still limit membership – but the major industry funds are open to anyone.

If They’re Cheaper, Why Doesn’t Everyone Switch?

Three reasons usually explain it:

1. Employers default you into something else

Default super is powerful. When someone starts a job, HR simply asks for your super details. If you don’t provide them, the employer will use a default fund – which might be a retail fund tied to a banking group. Millions of Australians stay there for years without thinking about it.

2. People value features beyond fees

Industry funds are excellent on cost and performance, but some savers want things they don’t specialise in:

• direct shares inside super
• complex SMSF-style investment menus
• wrap platforms linked to an adviser
• detailed retirement modelling tools
• banking-integrated apps and dashboards

Retail funds and platforms like Netwealth, Macquarie Wrap and BT Panorama still attract members who want deeper control and advice-driven portfolios.

3. Past decisions create inertia

Switching is easy – but people delay it. They worry about paperwork, losing insurance, or making a “wrong call.” Sometimes they simply don’t know they can choose.

So Which Industry Fund Do You Choose?

This is where the simplicity breaks down. There isn’t one “industry fund.” There are dozens, each with a different history, investment style, and insurance design.

But unlike the name suggests, you do not need to work in that industry.

You can join:

• CBUS even if you’ve never been on a construction site
• HESTA even if you’re not in healthcare
• Hostplus even if you’re not in hospitality
• Rest even if you’ve never worked retail

The industry names remain because of their origins, not because they restrict membership.

Why Industry Funds Still Matter

Industry funds remain strong because they combine three long-held advantages:

• not-for-profit structure
• comparatively low fees
• consistent long-term investment results

But they no longer dominate the low-cost space the way they once did. Digital super funds and low-fee index options from retail platforms now compete directly with them – often with similar fee structures and better technology.

The Bottom Line

Industry funds are open, accessible, and often cheaper – but super is a long-term choice shaped by more than fees.

Some people want a straightforward, low-cost default – and an industry fund fits perfectly. Others want customisation, direct investing, adviser integration, or the tight digital ecosystem a retail platform provides.

The real question isn’t “Why don’t we all join an industry fund?” It’s “What do you want your super to do for you?”