Industry Fund vs Wrap Platform: What’s the Difference?
For most Australians, their first super fund was chosen for them by an employer — usually a large industry fund. These funds are popular for their simplicity, low default fees, and easy setup. But as your balance grows and your goals become more sophisticated, you might start to hear about “wrap platforms” and wonder whether they’re worth considering.
Both industry funds and wrap platforms are regulated under the same Australian superannuation framework, but the level of flexibility, control, and transparency they offer can differ significantly.
What Is an Industry Super Fund?
Industry funds are pooled investment vehicles managed by professional fund managers on behalf of members. They’re designed for simplicity, members choose from a handful of investment options (like “Balanced” or “Growth”), and the fund handles everything else.
Advantages:
Typically lower administration fees on standard options.
Straightforward for everyday workers with set-and-forget strategies.
Group insurance is automatically included (life, TPD, and income protection).
Limitations:
Limited choice of investments — no access to individual shares or ETFs.
Harder to create customised asset allocations.
Less visibility into the underlying portfolio and tax outcomes.
For many Australians starting out, these funds do the job well. But as your super balance grows or your financial goals become more complex, their simplicity can start to feel restrictive.
What Is a Wrap Platform?
A wrap platform (sometimes called a super “wrap account”) acts like a personalised investment hub. Instead of your super being pooled with thousands of others, you and your adviser can choose from a vast menu of managed funds, ETFs, direct shares, and cash options — all inside one tax-effective super structure.
Key features include:
Greater investment flexibility and control.
Transparent reporting of performance, fees, and tax outcomes.
Ability to design diversified portfolios across multiple asset classes.
Integration with other wealth accounts (non-super investments, trusts, etc.).
Wrap platforms are popular with advised clients because they allow tailored portfolio management while still complying with superannuation rules.
Fees and Transparency
One of the biggest differences between the two structures is how fees are charged and disclosed.
Industry funds often bundle investment and administration costs together. They can appear cheaper but offer less itemised transparency.
Wrap platforms clearly show every cost — administration, investment management, trading fees, and adviser fees if applicable.
For higher-balance members (typically $150k+), wrap platforms can sometimes be cost-competitive or even cheaper once customised portfolios and adviser efficiencies are considered.
Insurance and Advice Integration
Industry funds include automatic group insurance, which is convenient but less flexible. Premiums are generally cheaper but can reduce as you age.
With wrap platforms, insurance can be held inside or outside super through a retail policy, allowing:
Choice of provider and benefit structure.
Underwriting tailored to your personal circumstances.
Control over premium funding and claim terms.
This structure also allows for more personalised financial advice, as advisers can actively manage investments within the platform, track tax positions, and rebalance portfolios — something not possible in standard industry funds.
Which Is Right for You?
There’s no one-size-fits-all answer. The right choice depends on your stage of life, super balance, and financial goals.
If you’re working with a financial adviser, a wrap platform allows professional oversight across your super, insurance, and investment portfolios in one place.
Key Takeaway
Industry funds offer simplicity and low costs — ideal for early-stage wealth building. But as your financial position grows, wrap platforms can unlock a higher level of control, transparency, and strategic tax management that industry funds can’t match.
Before switching, compare fees, insurance cover, and investment flexibility carefully. The right structure should align with your goals — not just your default settings.
Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute financial, tax, or investment advice. We recommend speaking with a qualified financial adviser before making any decisions regarding your superannuation. Every individual’s financial situation is unique, and personalised advice is essential to ensure the best outcome for your specific circumstances.
