Self-Managed Super Funds (SMSFs)

There’s no legal minimum, but many advisers recommend a starting balance of at least $250,000–$300,000 to make the costs and responsibilities worthwhile. With lower balances, the fees and admin may outweigh the benefits.

It depends. An SMSF gives you more control and flexibility but comes with more responsibility. If you’re experienced with investing, want to manage your own retirement savings, or have specific goals (like buying property in super), it may suit you. If you prefer simplicity and less paperwork, a traditional fund may be better.

You can invest in a wide range of assets, including:

• Shares (Aussie and international)

• Managed funds and ETFs

• Term deposits and bonds

• Residential or commercial property (with rules)

• Cash and precious metals

However, all investments must follow super laws and your fund’s investment strategy. Personal use of fund assets is not allowed.

Yes—your SMSF can buy residential or commercial property, but there are strict rules:

• It must be for investment purposes only (not personal use)

• You can’t rent it to yourself or family (unless it’s commercial property used by your business)

• The property must be held in the name of the SMSF

You can also borrow to buy property, but this involves a Limited Recourse Borrowing Arrangement (LRBA), which has additional costs and risks.

You can technically manage your SMSF yourself, but you’ll still need to meet legal obligations as a trustee. Most SMSF trustees work with a team that may include:

• A financial adviser

• An accountant

• An SMSF auditor

• Sometimes a property manager or broker

Getting expert help can reduce risk and ensure your fund remains compliant.

As a trustee, you are responsible for:

• Ensuring the fund is run for sole purpose of retirement benefits

• Keeping detailed records

• Preparing an investment strategy and reviewing it regularly

• Lodging annual tax returns and undergoing an independent audit

• Staying compliant with superannuation and tax laws

Non-compliance can result in heavy penalties or disqualification.

Costs vary depending on complexity but may include:

• Accounting and audit fees

• ASIC fees (if using a corporate trustee)

• Financial advice

• Investment platform or brokerage fees

• Property-related costs (if applicable)

For many funds, annual costs range between $2,000 to $5,000+.

Yes. An SMSF can have up to six members, typically family or business partners. Each member must also be a trustee (or director of a corporate trustee), meaning they share responsibility for decisions and compliance.

Yes—if your SMSF owns commercial property, your business (or a related business) can lease it at market rates. This is a common strategy for business owners and must be documented properly to remain compliant with SIS (Superannuation Industry (Supervision)) rules.

When you retire, your SMSF can begin paying you a pension or a lump sum. Upon death, your benefits are distributed according to your nominated beneficiaries, trust deed, and estate plan. Good SMSF planning includes a binding death benefit nomination and clear instructions in your will.