Self-managed super funds (SMSFs)¶

Most people's super sits in a fund that a professional manages for them. A self-managed super fund (SMSF) is different — it is a super fund you run yourself, for a small number of members. The members are usually the trustees, which means they are responsible for running the fund and following the rules.

An SMSF can offer more control. It also carries significant responsibilities. This lesson gives a balanced overview so you know what is involved before you look into it further. It does not tell you whether an SMSF is right for you.

In one line

An SMSF is a super fund you run yourself for a small number of members, who are usually the trustees and are responsible for running it and following the rules.

Why this matters¶

An SMSF puts you in charge of your own retirement savings. That control appeals to some people. But being a trustee is a real job with legal duties, and the responsibility stays with you even if you pay someone to help. Understanding both sides — before you commit — helps you make an informed decision with proper advice.

What you will learn¶

What an SMSF is
The control it offers, and the responsibilities that come with it
Where to get regulated information and licensed advice

Understanding the concept¶

An SMSF is a super fund that its members run for their own retirement. The ATO, which regulates SMSFs, explains that an SMSF can have a small number of members, and that generally each member must be a trustee (or a director of a corporate trustee).

The control. As a trustee you make the decisions — including setting and following an investment strategy that suits the members. That flexibility is the main reason people consider an SMSF.

The responsibilities. The ATO is clear that all trustees are responsible for running the fund and following super and tax laws. This includes keeping records of the fund's decisions and actions, following the rules for accepting contributions and paying benefits, and appointing an approved auditor to audit the fund each year. The ATO stresses that you are personally responsible for the fund complying with the law — and that this applies even if you rely on another trustee or a professional to help.

Because an SMSF is a significant undertaking with real duties and costs, the sensible path is to read the ATO's SMSF information and get licensed financial advice before deciding.

For accountants & bookkeepers

The ATO frames the trustee's duties around the governing rules and the super and tax laws, with an annual independent audit and record-keeping obligations. Point clients to a registered, licensed financial adviser for the "is it right for you" decision — that advice is regulated and outside general information. Moneysmart also notes that a fund's starting balance affects how cost-effective it is, since fixed costs weigh more heavily on a smaller balance.

Example¶

Aisha is thinking about setting up an SMSF so she can have more say over how her super is invested. Before doing anything, she reads the ATO's guidance on what a trustee is responsible for, and she sees that the record-keeping, the annual audit and the legal duties would all fall to her. She books time with a licensed financial adviser to work out whether an SMSF suits her situation. She does not rush the decision — the control comes with responsibilities she wants to understand first.

Common mistakes¶

Thinking an SMSF is hands-off — the trustees run it and carry the duties.
Assuming paying a professional removes your responsibility — it does not.
Deciding without licensed advice or without reading the ATO's SMSF guidance.

How this works in myaccountant¶

In the app — if an employee's super goes to an SMSF, myaccountant stores the SMSF details you need to pay it, including the fund's ABN and electronic service address (ESA), and flags incomplete details before you pay. myaccountant does not set up or run an SMSF — that is the trustees' job, with licensed advice.

Key points¶

An SMSF is a super fund you run yourself for a small number of members.
The members are usually the trustees and are responsible for running it.
It offers more control, with significant legal duties and costs.
You stay personally responsible for the fund following the rules.
The ATO regulates SMSFs — get licensed advice before deciding.

Learn next¶

General information only — not tax, super or financial advice.

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