How to know if an SMSF is right for you

11 September 2025

Thinking about a Self-Managed Super Fund (SMSF)? While managing your super independently may seem appealing, it’s important to consider all the factors involved.

Taking charge of your super

We all like to feel in control of our lives – from managing how we spend our time and effort, to how we make decisions. The same can apply to super.

Your super is your money, invested for your future. So choosing how you manage your investments is your decision. That could mean leaving your super’s admin and investment decisions to AustralianSuper’s experts, taking a more active role in choosing your investments through AustralianSuper’s Member Direct investment option, or choosing to establish an SMSF.

What is a Self-Managed Super Fund (SMSF)?

An SMSF is a private super fund, which must be run for the sole purpose of providing retirement benefits for its members. It requires creating a trust with one to six individuals, so is commonly established by an individual or family.

Each member becomes either a director or trustee, and is actively responsible for:

• deciding where they will invest and what insurances they may need
• taking care of the day-to-day administration of the fund
• complying with super and tax law.

Is an SMSF right for me?

Opting for an SMSF is another way to take the reins of your retirement savings, from investment decisions to retirement payouts. However, the complexity of SMSFs shouldn't be underestimated.

Financial and legal expertise

SMSFs cater to those with a robust understanding of financial and legal matters. If you have specialised financial or legal knowledge, managing your own SMSF can be rewarding. You might appreciate the opportunity to use your personal expertise.

Yet, without the time or know-how, an SMSF might not be the best fit. You might prefer to keep your super with an industry or retail fund for their expertise. AustralianSuper's investment team has hundreds of professionals, using their deep sector knowledge and experience to manage members’ retirement savings.

Fees and running costs

Running an SMSF incurs various annual expenses which affects the returns you can expect to generate. These may include audit fees, reporting costs, asset valuation fees, insurance (if you have any), legal fees, brokerage, financial advice, and transaction costs, among others. The Australian Tax Office (ATO) reported the annual total expenses of an SMSF averaged $17,400 and a median of $9,300 in the 2022-23 financial year¹.

Professional super funds also charge fees to cover the cost of managing members’ super and investments, but their size and scale means these costs are distributed across more members.

LEARN MORE: AUSTRALIANSUPER’S FEES AND COSTS

Managing an SMSF

You’ll need to put in more time and effort with an SMSF, even if you outsource the day-to-day management. Some people thrive on the increased responsibility, while others find it hard to keep up.

Trustees must stay up to date on SMSF regulations and reporting requirements. Even if you delegate tasks, ultimate responsibility still rests with the SMSF members. As the trustee or director, you’re responsible for ensuring the SMSF adheres to all legal requirements and mistakes can have severe consequences, including fines.

What you can invest in

Some people choose an SMSF to invest in different asset classes. For example, SMSFs can include your own selection of real property, art, collectibles, and physical gold. However, it's crucial to remember that the SMSF’s sole purpose is to provide for retirement. It’s illegal to use an SMSF to access your super before retirement, such as buying a holiday home or artworks to decorate your house.

Different regulations and protections

While professional super funds are regulated by the Australian Prudential Regulation Authority (APRA), SMSFs are regulated by the Australian Tax Office (ATO).

This means there are different processes and protections if things go wrong. For example, in case of fraud or theft, APRA-regulated funds can apply to the government for compensation but SMSFs cannot. If you lose money through your SMSF because of fraud or theft, you’ll have to pursue this on your own and at your own expense.

Using your SMSF in retirement

For retirees, you’ll also want to consider making provisions for your SMSF to pay you a retirement income stream (such as an account based pension). You can also choose to wind up your SMSF and roll it into a fund like AustralianSuper for ease and support.

This is why some people find investing their super in retirement helps their savings last after their working days are over. For example, an account based pension provides an opportunity to grow your super savings and keep up with the rising cost of living (inflation).

READ MORE: HOW TO WIND UP YOUR SMSF

Why Warwick switched back from an SMSF

AustralianSuper member Warwick and his wife initially set up an SMSF because they thought it would work well with their property investments. But, even as a qualified accountant, Warwick found it complicated, and he struggled to keep up with the ever-changing regulations and rules.

Then he made a loss through his SMSF. That was when he decided to join AustralianSuper. He found that managing the SMSF wasn’t worth the effort, and he wanted to allow expert investors to manage his super for him².

LISTEN TO WARWICK’S FULL STORY ON THE MOMENTS THAT COUNT PODCAST

Other ways to take control of your super investments

You can create and manage your own super investment strategy with AustralianSuper’s Member Direct investment option. Member Direct lets you choose from S&P/ASX 300 shares, and selected Exchange Traded Funds (ETFs), Listed Investment Companies (LICs) and term deposits. You also get access to detailed company and market information, independent company research from third party specialists, and investment tools including watchlists through the Member Direct online platform. There’s less paperwork than an SMSF and no set-up costs. An additional ongoing portfolio administration fee applies based on the level of access you select, and brokerage fees will apply on share, ETF and LIC transactions.

LEARN MORE: MEMBER DIRECT

Member Direct isn’t your only investment option with AustralianSuper. You can choose another approach with PreMixed or DIY Mix options. PreMixed is the most hands-off, with AustralianSuper’s global investment team choosing how your super is invested. DIY Mix enables you to pick asset classes, giving you increased control without the day-to-day management.

Each PreMixed investment option is developed by our team of experts who actively take an investment approach designed to outperform inflation. AustralianSuper manages over $385 billion in assets on behalf of over 3.5 million members³. As Australia’s largest fund⁴, we use our size, capability and global reach to help us access the best investment opportunities for members.

You can choose one option or a combination of options across PreMixed, DIY Mix and Member Direct.

LEARN MORE: YOUR INVESTMENT OPTIONS

The benefits of financial advice

Super is all about the long term. And decisions about how your super is invested can have a big impact on your future. That’s why it’s important to get the best information and advice possible for your needs - including how you choose to invest or whether an SMSF might be right for you. AustralianSuper has education and advice options⁵ to help guide you in making informed decisions.

Professional financial advice can also help. Members can access simple personal advice about their AustralianSuper account over the phone⁶ or comprehensive financial advice through a qualified financial adviser⁵. Consider seeking advice on your situation to understand what options will work best for your super.

FIND AN ADVISER

Beware of scams:

Scammers are targeting super and may contact you about setting up a new SMSF account. Protect yourself, find out more about current super scams.