Thinking About an SMSF? Here’s What You Should Know First

Self-Managed Super Funds (SMSFs) have become an increasingly popular way for Australians to take control of their retirement savings. As of March 2025, around 650,000 SMSFs hold nearly $1 trillion in assets — that’s about a quarter of the total superannuation system.

It’s easy to see the appeal: more flexibility, more investment options, and more control. But that control comes with responsibility — and it’s not the right fit for everyone.

Here’s what we think you should know if you’re starting to explore whether an SMSF might suit your situation.

Who’s Using SMSFs — And Why?

SMSFs tend to attract people who are financially engaged and want a say in how their retirement money is managed.

Around 1.2 million Australians are SMSF members. Most are couples — about 68% of SMSFs have two members — and the majority are over 45. It’s also common to see SMSF members with higher balances; the average member holds over $800,000 in their fund.

This makes sense. SMSFs tend to suit those who’ve already built wealth and are looking for better tax efficiency, more tailored investment options, or more control over their estate planning.

What’s the Big Draw?

Control is the headline benefit — but not the only one.

With an SMSF, you (and the other members, if any) act as trustees. That means you make the investment decisions, not a super fund manager. You're able to build your own investment strategy and include assets that retail and industry funds won’t typically touch — things like direct property, unlisted shares, or even crypto in some cases.

On top of that, SMSFs offer:

• Tax flexibility – for example, controlling when to realise capital gains
  
• Better estate planning options – including tailored binding death benefit nominations
  
• Full transparency over where your super is invested and how it’s performing
  

But again — all of this comes with increased responsibility.

Setting Up an SMSF: What’s Involved?

The setup process isn’t overly complex, but it does require attention to detail. Here’s an overview of what needs to happen:

• Choose your trustee structure – either individual trustees or a corporate trustee (which many advisers recommend for long-term flexibility)
  
• Ensure trustee eligibility – no one involved can be bankrupt or have a dishonesty conviction
  
• Create a trust deed – this governs how your fund operates and needs to be legally compliant
  
• Register with the ATO – this includes applying for an ABN and TFN within 60 days
  
• Open a dedicated SMSF bank account – separate from your personal accounts
  
• Set up SuperStream access and create an investment strategy that meets your retirement objectives
  

Once it's up and running, you'll also need to:

• Lodge annual tax returns
  
• Organise an independent audit
  
• Keep proper records and minutes
  
• Ensure the fund remains compliant with super laws
  

This is where working with an SMSF adviser or administrator can take the pressure off and help avoid costly mistakes.

What About the Costs?

It’s common to ask what an SMSF costs to run — but in our experience, the better question is what kind of value you want from your superannuation.

Yes, SMSFs come with responsibilities and professional costs: administration, accounting, audit, and sometimes legal or financial advice. But they also give you the ability to do things you simply can’t do with other super funds.

You might use your SMSF to:

• Buy your clinic or office premises and lease it back to your business
  
• Invest in a broader range of assets — like commercial property or private equity
  
• Align your super with your family trust or company tax strategy
  
• Set up a long-term estate plan that actually reflects your family’s needs
  

These aren’t everyday decisions. They’re strategic ones — and they deserve a structure that gives you flexibility and control.

If your only concern is reducing fees, an SMSF may not be the right option. But if you’re looking to take more ownership of how your retirement wealth is managed, the costs are simply the investment required to do it well — with the right support around you.

Is It the Right Fit for You?

SMSFs tend to work best for people who:

• Have a combined super balance of $300k or more
  
• Want to manage their own investments (or work closely with an adviser)
  
• Are thinking strategically about tax, retirement, or intergenerational wealth
  
• Are willing to take on extra responsibility — or delegate to the right team
  

That said, every situation is different. It’s not about ticking boxes — it’s about aligning your structure with your goals.

Thinking About Starting an SMSF?

If you're considering setting up an SMSF — or wondering whether your current super setup is still serving you — we're happy to talk it through.

We’ll help you understand:

• Whether an SMSF is the right fit for your goals
  
• What it would involve and what responsibilities come with it
  
• How it might support your broader tax, retirement, and wealth planning strategy
  

Book a quick call with an adviser and get clear on whether this structure makes sense for you — or whether there’s a smarter path forward.