Self-managed Super Funds

Establishing a self-managed super fund (SMSF) has become very popular over recent years and involves you managing your own superannuation fund. As at March 2024, there were over 616,000 SMSF’s in Australia managing $932 billion of super funds. They are regulated by the Australian Taxation Office (ATO).

With a SMSF, you are a Trustee of the fund and are responsible for the ongoing management and compliance responsibilities of your fund, including:

• documenting the fund's investment strategy;
• making and managing the fund's investments underlying to that investment strategy; and 
• administering the fund, including day to day activities of the fund and meeting all compliance issues including the lodging of tax returns and audited accounts for the fund

Many people establish self-managed super funds to gain access to a broader range of investment options not available in other superannuation funds, including direct shares, collectables, certain direct property investments and borrowing via Limited Recourse Borrowing Arrangements (LBRAs). (Refer to the Investments module for more details on investments information.)

It is important to realise that self-managed super funds can be a very complex area and should involve assistance and specialised advice from an appropriately qualified and experienced adviser. Further explanation will be provided later in this module as well as in the separate SMSF module.