Self-Managed Super Fund (SMSF)?
Is it right for you?


Self-Managed Super Fund (SMSF)
Is it right for you?

Before you decide to transfer to an SMSF, you should know what an SMSF is, how suitable it is for you and what factors are involved.

An SMSF is a super fund that you manage yourself. This means that you, the individual, have the responsibility for your SMSF.

SMSF’s can have advantages including individuals having more control over how their fund is managed and run.

As the members are also the trustees it can allow them to develop their own investment strategy and be directly involved in investment decisions and allow them to invest in other asset classes such as direct property or acquire business premises that they can lease back to their own business.

Before choosing an SMSF, you should be fully aware of the level of responsibility that is involved. This would include things like the amount of control you can exercise and the accountability, legal and compliance obligations that you must follow, fees and costs, and investment performance.

You need to do your own research

Before you decide to start an SMSF, you should consider weighing up the pros and cons of this option.

Both the Australian Securities and Investments Commission (ASIC) and the Australian Taxation Office (ATO) provide information on SMSFs to help you understand what it means to have an SMSF.

The ATO website provides information on setting up and running an SMSF, such as:

  • Setting up a SMSF – which includes the fact that an SMSF isn’t for everyone, the responsibilities and legal obligations that you must meet as well as the cost and time of running your fund
  • Contributions and rollovers – minimum standards for accepting contributions into an SMSF
  • Investing – the requirement for an investment strategy, the importance of a diversified portfolio and what you can and cannot invest in
  • Property – the important rules to understand before buying property using your SMSF.  As property can only be used to provide retirement benefits
  • Tax on income – the rules you must follow to be a complying fund to be entitled to concessional tax rates
  • Administering and reporting – obligations that include an annual audit, keeping appropriate records and reporting fund’s operation
  • Winding up an SMSF – requirements, key considerations and tasks that must be met


You may find the ATO website pages below helpful.

Thinking about Self-Managed Super
Consider the cost, time and skills to setup an SMSF
Compare SMSF with other super funds
Winding up an SMSF

Further information can also be found in the Moneysmart website

Understanding if a SMSF is right for you.