Super funds facing 12.7% APRA levy increase

Mike Taylor

Managing Editor and Publisher

27 May 2026

The collapse of the Shield and First Guardian funds will impact the scale of the Australian Prudential Regulation Authority (APRA) levy paid by superannuation funds.

The Treasury has released for discussion the Proposed Financial Institutions Supervisory Levies for 2026-27 intended to fund APRA and the Australian Taxation Office (ATO) entailing a solid increase and stating why.

The discussion paper shows total levies for the superannuation sector rising by 12.7%, the highest of all sectors, to total $125.2 million for 2026-27.

“Levies funding from the superannuation industry in 2026–27 represents 42.1 per cent of total levies, an increase from 39.8 per cent in 2025–26. The restricted levy minimum remains unchanged for 2026–27 at $12,500. The restricted levy maximum has increased to $1,050,000 for 2026–27,” it said.

Seeking to explain what APRA would be doing to justify the increase, at the top of the list, according to the discussion paper, is the review work around platforms and investment governance which was prompted in large measure by the Shield and First Guardian collapses.

It states that additional money is required to enable APRA to more closely supervise platform superannuation trustees.

“APRA has recently completed its platforms thematic review and published findings in a letter to industry. The review covered 95 per cent of Funds Under Management for platform products to date. APRA is continuing the momentum on increased supervisory scrutiny regarding weaker practices identified through the thematic,” the discussion paper said.

“The thematic highlighted gaps in relation to investment option onboarding and monitoring practices and poor member outcomes practices regarding member transfers and remedial action. Rectification and uplift requirements continue for deficient platform trustees. There also is a case to consider changes to prudential settings for this sector of the market e.g. to strengthen conflicts management,” it said/

The discussion paper also pointed to APRA with the Australian Securities and Investments Commission (ASIC) providing individual feedback to superannuation trustees with respect to the Retirement Income Covenant.

It also pointed to APRA maintaining “intense scrutiny of fund-level expenditure to hold RSE licensees accountable for improving practices, reducing spending that is deemed not in members’ best financial interests and promoting the financial interests of their members”.

“APRA is continuing its intensified supervisory approach to fund expenditure, informed by its data collections. The focus is on comparatively higher levels of expenditure or where benefit to members was not immediately apparent. APRA has already taken action against a trustee as part of this work,” the discussion paper said.