A self-managed super fund (SMSF) is a private super fund that you manage. This type of super fund is different to industry or retail funds, it holds all the benefits of a regular super fund, but with the added benefits of being able to choose where you invest your money. A typical set up of a SMSF structure would comply the following:

  1. has fewer than six members;
  2. each individual trustee of the fund is a member;
  3. each member of the fund is a trustee;
  4. no member of the fund is an employee of another member of the fund, unless those members are related;
  5. no trustee of the fund receives any remuneration for his or her services as a trustee.

Setting up your own super fund is appealing, but it requires a lot of work and comes with risk. If you’re not 100% committed and understand what’s involved, it’s best to leave the heavy lifting to professional like us.


How does SMSF work?

SMSFs have their own Tax File Number (TFN), trust deed and bank account, all SMSF investments are made in the name of the fund and are controlled by the trustees. In order to comply with relevant regulation, all SMSFs must have a documented investment strategy and include a plan for when the SMSF shall have an end. This strategy should satisfy the sole purpose test and be used to guide trustee decision-making. Our experienced advisor will guide you through to come up with a feasible plan.

Once it’s been set up, the following steps are typical for an SMSF to function:

  1. Rollover existing super
  2. Organize employer contributions (if you are employed)
  3. Accept contributions within limits
  4. Making investments
  5. Review strategy
  6. Maintain records.

Responsibilities and Risks of SMSF

  • Your investments may not bring in big returns.
  • There’s a chance your SMSF will be negatively impacted if relationships between members break down;
  • You’re personally liable for any decisions that are made with your fund, even if you get help from a professional or if another member made the decision.

Cost Involved

The total expense for an SMSF on average is increasing year on year according to ATO data, cost involves:

  • accounting
  • auditing
  • tax advice
  • legal advice
  • financial advice
Average total expenses by SMSF asset range
Asset range 2018–19 2017–18 2016–17 2015–16 2014–15
>$0–$50k $4,245 $3,813 $3,589 $3,533 $3,273
>$50k–$100k $5,853 $5,574 $5,504 $5,630 $5,016
>$100k–$200k $10,545 $10,287 $9,938 $9,762 $8,639
>$200k–$500k $12,844 $12,542 $11,821 $11,418 $10,064
>$500k–$1m $12,500 $12,298 $11,912 $11,850 $10,763
>$1m–$2m $14,577 $14,645 $14,701 $15,312 $13,835
>$2m $29,777 $29,905 $28,782 $28,865 $25,938
All funds $15,472 $14,968 $14,152 $13,919 $12,377

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