SMSF benefits explained

A self-managed super fund (SMSF) can give greater control over how your super is invested. An SMSF also comes with additional responsibilities, but many Australians consider one for the flexibility and investment options.

Here are some of the key benefits of an SMSF.

1. Greater control over your investments

With an SMSF, you decide how your retirement savings are invested.

You can choose what your fund invests in, update its strategy as circumstances change and act when opportunities arise.

2. Access to a wider range of investments

SMSFs can invest in a broad range of assets, as long as they comply with super laws and the fund's investment strategy.

This includes:

• Australian and international shares

• ETFs

• Managed funds

• Residential and commercial property

• Cash and term deposits

• Cryptocurrency

• Precious metals

• Other eligible investments

3. General annual administration costs

Unlike many retail and industry super funds, which often charge percentage-based administration fees, SMSFs generally have fixed annual costs.

As your balance grows, those fixed costs may make up a smaller percentage of your portfolio.

4. Pool your super with up to six members

An SMSF can have up to six members.

Pooling super balances may make it easier to invest in a broader range of assets and share the fund's fixed costs.

5. Concessional tax treatment

Like other complying super funds, SMSFs may receive concessional tax treatment.

Depending on your circumstances, this may include:

• Investment earnings generally taxed at up to 15% during accumulation

• Concessional capital gains tax treatment

• Tax-free investment earnings on assets supporting retirement phase pensions

Learn more in our guide to SMSF tax benefits.

6. Commercial property borrowing

Subject to the current rules, SMSFs may be able to borrow to purchase eligible commercial property through a limited recourse borrowing arrangement (LRBA).

Recent legislative changes mean new LRBAs can no longer be used to buy residential property, although existing arrangements will be grandfathered.

Things to consider

An SMSF isn't right for everyone.

As a trustee, you're legally responsible for making sure the fund complies with laws and regulations, even if an administrator helps with the paperwork.

It's also important to consider:

• How much time it takes to run the fund

• Your investment knowledge and confidence

• Ongoing administration and compliance requirements

• Whether an SMSF suits your circumstances

How Stake Super can help

Running an SMSF doesn't mean doing everything yourself.

Stake Super helps with setup, administration, annual accounting, tax return preparation and audit coordination, so you can stay focused on managing your investments.

Ready to take control of your super?

We're here to answer any questions you have around setting up and running your own fund.

Get started online or speak to a Stake Super specialist.

Ciara Conway

Commercial Manager - Stake Super

Ciara is a Commercial Manager at Stake Super, with over 10 years of experience in the SMSF industry and an MA in Accountancy and Finance from Heriot-Watt University in Edinburgh, United Kingdom. Having previously worked at a chartered accounting firm and one of the largest SMSF administrators in Australia, Ciara has extensive knowledge of SMSF compliance. She is also a current member of the SMSF Association.