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100+ Free Superannuation and Retirement Applications (SRA) Practice Questions

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2026 Statistics

Key Facts: Superannuation and Retirement Applications (SRA) Exam

3 hours

Open-book written exam duration

SRA 2026 Subject Syllabus

80/20

Exam and assignment weighting

SRA 2026 Subject Syllabus

$3,800 AUD

2026 subject fee (GST exempt)

Actuaries Institute Fellowship Program fees

7

Weighted learning-objective groups

SRA 2026 Subject Syllabus

Semester 1

Only semester SRA is offered

Actuaries Institute Fellowship Program

Superannuation and Retirement Applications (SRA) is one of four Applications subjects in the Actuaries Institute Fellowship Program, offered in Semester 1 only and delivered 100% online over a 16-week semester. It is assessed by a three-hour open-book written examination worth 80% and an assignment worth 20%, with a 2026 subject fee of $3,800 AUD; the Institute publishes no item count and no pass mark, and results are set each semester by the Board of Examiners. The official syllabus weights seven learning-objective groups: global retirement issues 10%, government approach 15%, risk management and the actuary's role 15%, DC fund design 15%, fund projects 15%, retirement income products 15%, and projection models 15%. These 100 free questions are an English-language multiple-choice study adaptation of that syllabus — they are not an official translation, an official item bank, or a simulation of the real written-answer paper.

Sample Superannuation and Retirement Applications (SRA) Practice Questions

Try these sample questions to test your Superannuation and Retirement Applications (SRA) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under Section 62 of the Superannuation Industry (Supervision) Act 1993 (SIS Act), what is the 'Sole Purpose Test'?
A.The trustee of a regulated superannuation fund must maintain the fund solely for core purposes (providing benefits on a member's retirement from gainful employment, on attaining a prescribed age, or to dependants on the member's death) and for approved ancillary purposes
B.The fund must invest solely in a single company's shares
C.The fund must have solely one member and one trustee
D.The trustee must maintain fund records solely in physical paper format
Explanation: The Sole Purpose Test is the foundational legal constraint under the SIS Act. A superannuation fund must be maintained exclusively for core retirement and death benefits (or approved ancillary benefits like disability/illness), prohibiting trustees from providing present-day financial or lifestyle benefits to members or third parties.
2Under APRA Prudential Standard SPS 160 (Defined Benefit Matters), how is the 'Vested Benefits Index' (VBI) defined for a defined benefit superannuation fund?
A.The market value of fund assets divided by total vested benefits (the benefits payable if all members voluntarily terminated employment on the valuation date): VBI = Assets / Vested Benefits
B.The total annual investment return divided by total employer contributions
C.The present value of accrued benefits divided by the statutory minimum capital
D.The number of retired members divided by the number of active members
Explanation: VBI = Fund Net Assets / Total Vested Benefits. Vested benefits represent the immediate contractual withdrawal value if all members resigned on the valuation date. Under SPS 160, a VBI < 100% indicates a funding shortfall requiring monitoring or a Funding Management Plan.
3Under APRA SPS 160, what is the regulatory consequence if a defined benefit fund's Vested Benefits Index (VBI) drops below 100% (in an unsatisfactory financial position)?
A.The trustee must formulate and submit to APRA a written Funding Management Plan (FMP) agreed with the sponsoring employer, designed to restore the VBI to at least 100% within a reasonable period (normally not exceeding 3 years)
B.The fund must immediately be wound up and all assets distributed to charity
C.The trustee must permanently reduce all member vested benefits by 50%
D.The sponsoring employer is legally exempt from making any further contributions
Explanation: When VBI < 100%, SPS 160 requires the trustee to establish a Funding Management Plan (FMP) with actuarial advice, detailing increased employer funding contributions and monitoring to restore the VBI to at least 100% within a target timeframe (typically up to 3 years).
4Under APRA SPS 160, what is the 'shortfall limit' for a defined benefit superannuation fund and who sets it?
A.A vested benefits coverage level, below 100%, that the RSE licensee sets on actuarial advice as the point at which a fund in an unsatisfactory financial position is treated as having a shortfall requiring a restoration program
B.A fixed 95% level prescribed in the SIS Act that applies identically to every defined benefit fund
C.The level at which APRA automatically cancels the fund's RSE licence
D.The minimum cash balance a defined benefit fund must hold at all times
Explanation: SPS 160 requires the RSE licensee of a defined benefit fund to determine a shortfall limit on the advice of an actuary. It is a coverage level below 100% of vested benefits that represents an acceptable degree of short-term volatility, and the licensee must have a program to restore the fund's financial position if coverage falls below it. Because it is set fund by fund on actuarial advice, there is no single statutory percentage. The Actuaries Institute publishes practice guidance on determining the shortfall limit.
5In the Australian superannuation tax framework, what are the standard headline tax rates applied to Concessional Contributions and Accumulation-Phase Investment Earnings for complying funds?
A.15% tax on concessional contributions; 15% tax on accumulation-phase investment earnings (with a 1/3 CGT discount on assets held >12 months, yielding an effective 10% capital gains tax rate)
B.30% tax on contributions; 0% tax on earnings
C.0% tax on contributions; 45% tax on earnings
D.10% tax on contributions; 20% tax on earnings
Explanation: Complying superannuation funds pay a flat 15% tax on concessional contributions and 15% on investment income in accumulation phase. For capital assets held over 12 months, a 33.3% discount applies, reducing the effective CGT rate to 10% (15% × 2/3).
6Under Division 293 of the Income Tax Assessment Act 1997 (ITAA 1997), what is the additional tax imposed on high-income individuals whose combined income and concessional super contributions exceed the statutory threshold?
A.An additional 15% tax on the excess concessional contributions (bringing total tax on contributions to 30%), applied to individuals with income plus contributions exceeding AUD 250,000
B.A 50% penalty on all bank savings
C.An additional 5% tax applied to individuals earning over AUD 50,000
D.A complete forfeiture of all employer superannuation contributions
Explanation: Division 293 tax imposes an extra 15% tax on taxable concessional contributions for individuals whose combined income (adjusted taxable income + low tax contributions) exceeds AUD 250,000, bringing their effective contribution tax rate from 15% to 30% to reduce tax concession disparities.
7Under Section 52(8A) of the SIS Act, what are the THREE core objectives that a superannuation trustee MUST balance when formulating a 'Retirement Income Covenant' (RIC) strategy?
A.(1) Maximizing expected retirement income, (2) Managing longevity, inflation, and market risks, and (3) Providing flexible access to expected capital during retirement
B.(1) Maximizing executive bonuses, (2) Minimizing IT expenses, and (3) Eliminating all member withdrawals
C.(1) Guaranteeing 100% equity returns, (2) Eliminating government taxes, and (3) Closing the fund in 5 years
D.(1) Forcing members into lump sums, (2) Banning lifetime annuities, and (3) Investing 100% in cash
Explanation: The Retirement Income Covenant explicitly mandates that trustees assist members in the decumulation phase by balancing: (1) maximizing retirement income over life, (2) managing key retirement risks (longevity, inflation, sequencing/market risk), and (3) maintaining flexible access to capital for unexpected expenses.
8What is the 'Transfer Balance Cap' (TBC) in Australian superannuation taxation?
A.A lifetime limit on the total amount of superannuation capital that a member can transfer into tax-free retirement pension phase income streams (e.g. Account-Based Pensions)
B.The maximum daily cash withdrawal from a bank branch
C.The maximum amount a super fund can transfer to a foreign reinsurer
D.The statutory cap on executive redundancy payouts
Explanation: The Transfer Balance Cap (TBC) limits the capital a member can move into the tax-free retirement pension phase. The general TBC is indexed to CPI and rose to $2.1 million from 1 July 2026 (from $2.0 million in 2025-26). Earnings in retirement phase on amounts within the cap are taxed at 0% (ECPI); capital above the cap must stay in accumulation phase (taxed at 15%) or be cashed out. Each member also has a personal TBC, which only receives proportional indexation on the unused part of their cap.
9Under Section 295-390 of the Income Tax Assessment Act 1997 (ITAA 1997), what is the role of an 'Actuarial Certificate' for Exempt Current Pension Income (ECPI) using the 'Unsegregated / Proportionate' method?
A.An actuary must calculate and certify the exempt percentage (proportion) of the fund's total investment income that is exempt from income tax, based on the ratio of average pension liabilities to average total fund liabilities across the financial year
B.An actuary must certify that all superannuation members are in good physical health
C.An actuary must approve all retail stock trading orders placed by the fund
D.An actuary must determine the salary bonus of the corporate trustee's directors
Explanation: Under the unsegregated method (Section 295-390 ITAA 1997), the actuary calculates the certified exempt proportion: Exempt % = Average Value of Current Pension Liabilities / Average Value of Total Fund Liabilities. The fund applies this percentage to exempt its investment income from the 15% tax.
10A self-managed super fund (SMSF) has an unsegregated pool of assets. Across the financial year, the average daily value of account-based retirement pension liabilities is AUD 1,200,000, and the average daily value of accumulation account liabilities is AUD 400,000 (total average liabilities AUD 1,600,000). The fund earns AUD 80,000 in gross investment income. Under the actuarial certificate, what amount of investment income is exempt from tax (ECPI)?
A.AUD 60,000
B.AUD 80,000
C.AUD 20,000
D.AUD 12,000
Explanation: Exempt Percentage = Average Pension Liabilities / Total Average Liabilities = AUD 1,200,000 / AUD 1,600,000 = 75.0%. Exempt Current Pension Income (ECPI) = 75.0% × AUD 80,000 = AUD 60,000. (The remaining AUD 20,000 is taxable at 15%, resulting in a tax liability of AUD 3,000).

About the Superannuation and Retirement Applications (SRA) Exam

Superannuation and Retirement Applications (SRA) is an Applications subject in the Actuaries Institute Fellowship Program. It promotes the actuary as an expert adviser on superannuation and retirement funds in the Australian environment, covering the retirement income system, government policy, risk management, defined contribution fund and retirement income product design, fund projects, and consumer projection models. The regulatory and technical aspects of defined benefit funds sit in a separate Institute Defined Benefit CPD subject, not in SRA.

Assessment

Open-book written examination worth 80% plus a written assignment worth 20% (2026 SRA subject syllabus). Assessment is 100% online; SRA runs in Semester 1 only.

Time Limit

3 hours

Passing Score

not-published

Exam Fee

$3,800 AUD (2026 Fellowship Program subject fee, GST exempt) (Actuaries Institute (Australia))

Superannuation and Retirement Applications (SRA) Exam Content Outline

10%

Retirement issues across the globe

Assess ageing populations and their three drivers, analyse the three pillars of retirement systems across a variety of countries, examine government responses to longevity, and analyse tax and regulatory regimes with respect to a retirement system.

15%

The Australian government's approach to superannuation and retirement

Assess the government's role in managing a retirement income system, relate it to the actuarial control cycle, explain the findings of recent regulator and government investigations into superannuation, and identify trends that may lead to further use of policy levers.

15%

Risk management in the Australian retirement income system and the role of actuaries

Discuss key stakeholders, their roles, objectives and risks; describe statutory and advisory actuarial roles; propose ways to monitor fund risks; and analyse risks all retirement funds face, including money laundering, terrorism funding, fraud, identity theft and cyber security.

15%

Product design and management tools for defined contribution funds

Consider trustee responsibilities and the challenges individuals face in a DC environment, propose DC product design including MySuper and Choice, and demonstrate how a DC fund responds to emerging experience and to external events.

15%

Managing specific projects for superannuation and retirement funds

Construct asset-liability management strategies, apply asset-liability modelling to understand investment risk and set investment strategy, and explain the impact of member outcomes and design and distribution obligations on strategic planning and business performance reviews.

15%

Product design and management tools for retirement income products

Evaluate retirement income products currently available and their key features and risks, evaluate mechanisms to access equity in the member's residence, evaluate current government retirement income policy, and describe the retirement income covenant and the steps to give effect to a retirement income strategy.

15%

Projection models to support consumer decisions

Explain the context, purpose and key drivers for consumer projection tools, analyse the objectives and concerns of stakeholders, and demonstrate awareness of the professional guidance that applies to retirement projections.

How to Pass the Superannuation and Retirement Applications (SRA) Exam

What You Need to Know

  • Passing score: not-published
  • Assessment: Open-book written examination worth 80% plus a written assignment worth 20% (2026 SRA subject syllabus). Assessment is 100% online; SRA runs in Semester 1 only.
  • Time limit: 3 hours
  • Exam fee: $3,800 AUD (2026 Fellowship Program subject fee, GST exempt)

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

Superannuation and Retirement Applications (SRA) Study Tips from Top Performers

1Anchor every answer in the Australian retirement income system: the SIS Act covenants, the Retirement Income Covenant, and the APRA prudential standards that shape trustee decisions.
2SRA is a defined contribution and retirement income subject. Do not spend study time on defined benefit funding methods — the Institute covers those in a separate Defined Benefit CPD subject.
3Practise extended written answers. The Institute's examiners note that AI tools are unavailable in the exam and that independent writing practice is one of the most effective forms of preparation.
4Keep current-year thresholds at your fingertips: for 2026-27 the concessional cap is $32,500, the non-concessional cap is $130,000, the general transfer balance cap is $2.1 million and the Superannuation Guarantee rate is 12%.

Frequently Asked Questions

What is the official assessment format for the SRA subject?

The 2026 subject syllabus states that SRA is assessed by a three-hour open-book written examination worth 80% of the mark and an assignment worth 20%. Both are delivered online through Canvas; SRA is offered in Semester 1 only.

How many questions are on the real SRA exam and what is the pass mark?

The Actuaries Institute does not publish an item count or a pass mark for SRA. The paper uses extended written responses and case studies, and results are determined each semester by the Board of Examiners and published as a pass list.

Are these practice questions the same format as the official exam?

No. The official SRA paper requires written advice and analysis. This bank is an English-language multiple-choice study adaptation of the official syllabus, built to drill the concepts, regulation and judgement the paper assumes. It is not an official item bank and it cannot substitute for practising extended written answers, which the Institute's examiners specifically recommend.

Does SRA cover defined benefit funds?

No. The 2026 SRA syllabus states that the regulatory and technical aspects of actuarial management of a defined benefit fund, including the Registrable Superannuation Entity Actuary role, are described in a separate Institute Defined Benefit CPD subject. SRA focuses on defined contribution funds and retirement income products.

What are the prerequisites and fee for SRA in 2026?

You must have studied (but not necessarily passed) all Foundation and Actuary Program subjects, the LIRPD Principles subject, and one other Principles subject; an exception to the second Principles requirement can be applied for. The 2026 subject fee is $3,800 AUD (GST exempt), with optional printed materials at $270-$300 AUD.