Self-Managed Super Funds (SMSFs) have grown in popularity among Australians seeking more control over their retirement savings. With nearly one in four super dollars now managed through SMSFs, the appeal is clear: greater flexibility, tailored investment strategies, and potential tax benefits.

However, with control comes responsibility. Running an SMSF requires time, skill, and commitment. At Wealth Fundamentals, we help clients carefully assess whether an SMSF aligns with their long-term financial goals—and, just as importantly, when it doesn’t.

What Is an SMSF—and Why Do People Set One Up?

An SMSF is a private superannuation fund that you manage yourself, rather than through a traditional retail or industry super fund. As a trustee, you are responsible for investment decisions and ensuring compliance with the Australian Taxation Office (ATO)’s regulatory framework.

People are often drawn to SMSFs for reasons such as:

• Greater investment control: including direct property, shares, ETFs, and even collectibles.
  
• Tax flexibility: earnings are taxed at a concessional 15%, and strategic planning can unlock further advantages.
  
• Family fund structure: SMSFs can include up to six members, allowing family wealth to be managed collectively.
  
• Estate planning benefits: SMSFs offer more direct control over how superannuation is passed on.
  

While these benefits are compelling, they come with added complexity. Setting up an SMSF should be a strategic decision, not a reactive one.

Who Should Consider an SMSF?

There is no single formula for SMSF suitability, but we often see good indicators in clients who:

• Have strong investment experience and confidence making independent financial decisions.
  
• Possess super balances of at least $500,000, with clear plans to grow this through contributions or asset transfers.
  
• Are comfortable with regulatory responsibilities, including audits, compliance, and paperwork.
  
• Seek greater flexibility in how their super is invested, particularly with specific asset strategies such as commercial property.
  

The idea is not just to take control—it’s to ensure that control leads to better long-term outcomes.

The Real Responsibilities of SMSF Trustees

As the trustee of your own super fund, you take on the legal responsibility for operating the fund. This includes:

• Establishing and reviewing your investment strategy regularly to ensure it aligns with your retirement goals.
  
• Keeping records and preparing reports for annual audits and regulatory purposes.
  
• Staying informed on changing legislation that could affect your fund’s compliance.
  
• Maintaining adequate insurance coverage for members, as required by law.
  

Trustees cannot outsource these responsibilities entirely—even with professional support. You remain legally accountable for decisions made on behalf of the fund.

The Cost Factor—How Much Super Do You Need?

While there is no minimum balance required to establish an SMSF, cost-effectiveness remains a key consideration. In our experience:

• SMSFs are typically more viable with balances over $500,000.
  
• Below that threshold, administration fees and investment costs can erode performance.
  
• As the fund grows, costs become more efficient, often falling under 2% of the total balance.
  

Technology and streamlined administration services have improved the economics for smaller funds, although these are best suited for clients who are hands-on and committed to managing their fund well.

Comparing SMSFs to Traditional Super Funds

Before making the leap, it’s important to consider what you may be giving up:

• Industry and retail funds offer convenience, diversification, and professional management.
  
• APRA-regulated funds come with government protections and access to dispute resolution mechanisms such as AFCA.
  
• Insurance inside super may be harder or more expensive to replicate within an SMSF structure.
  

Every decision should be evaluated based on total performance potential—not just past returns, but the future viability and personal suitability of the strategy.

When an SMSF Might Not Be the Right Fit

Even clients with substantial super balances may be better served by other options if:

• They have limited time or interest in managing their own fund.
  
• They are unfamiliar with investment strategies or do not feel confident navigating complex markets.
  
• They require insurance arrangements that may be lost by leaving their current fund.
  
• They are motivated by a single investment goal (such as buying property) without a broader strategy.
  

In some cases, clients assume that SMSFs are the only way to access certain investment options, when in fact there may be alternative structures that achieve the same goal with less risk.

Professional Support Matters

At Wealth Fundamentals, we don’t just help clients set up SMSFs—we help them understand the full picture. That includes:

• Assessing the long-term value of an SMSF for their unique financial goals.
  
• Providing ongoing support with compliance, reporting, and investment decision-making.
  
• Coordinating with mortgage brokers, accountants, and auditors to ensure the fund operates smoothly.
  
• Reviewing performance and ensuring the investment strategy stays fit-for-purpose.
  

Making the Right Call for Your Future

SMSFs are not better or worse than traditional super—they’re simply different. If you’re someone who wants to be actively involved in your financial future, and you’re equipped to manage the responsibilities, an SMSF can offer significant benefits.

However, if you’re unsure whether the control is worth the complexity, there may be better options available.

We help you weigh the pros and cons, structure the right solution, and support you in building long-term wealth with confidence.

To explore whether a Self-Managed Super Fund aligns with your financial goals, contact Matt Lane or Alec Winter on 07 3720 1299 or email admin@wealthfundamentals.com.au. We’ll help you weigh the costs, responsibilities, and opportunities so you can make an informed decision about managing your retirement savings.

Lane Moses Pty Ltd ABN 56 092 186 117 trading as Wealth Fundamentals and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.

The information (including taxation) contained within this document does not consider your personal circumstances and is of a general nature only – unless otherwise stated. Wealth Fundamentals strongly suggests that you should not act on it without first obtaining professional advice specific to your circumstances. This information is based on our understanding of legislation at the time of writing. Such legislation may be subject to change. This publication cannot be reproduced in any form without the express written consent of the author.