What is a self-managed super fund (SMSF)?
Ever heard of a self-managed super fund (SMSF) and thought ‘Interesting, but what actually is it and how do they work?’
A self-managed super fund (SMSF) is a private super fund that you manage yourself.
Instead of leaving investment decisions to a retail or industry super fund, you and the other trustees decide how the fund is invested, while also taking responsibility for meeting its legal obligations.
How does an SMSF work?
Like any super fund, an SMSF exists to help its members save for retirement. The difference is who makes the decisions.
As an SMSF trustee, you're responsible for:
Making investment decisions
Maintaining an investment strategy
Keeping the fund compliant with superannuation laws
Meeting annual reporting and audit requirements
Many trustees use an SMSF admin partner like Stake Super to help manage the admin and compliance, while staying in control of their investments.
What can an SMSF invest in?
Subject to superannuation laws and your fund's trust deed, an SMSF can invest in a broad range of assets, including:
Australian and international shares
ETFs
Managed funds
Property
Cash and term deposits
Cryptocurrency
Other eligible investments
All investments must meet the requirements of superannuation law and be made for the sole purpose of providing retirement benefits.
Is an SMSF right for everyone?
In short, no.
An SMSF gives you greater control over how your super is invested, but it also comes with legal and compliance obligations.
Before setting up an SMSF, it's worth considering:
Whether you're comfortable making investment decisions
The time involved in running one
The ongoing administrative and compliance requirements
Whether an SMSF suits your circumstances
Do you need a large super balance?
There's no legal minimum balance to start an SMSF.
Whether it's right for you depends on your circumstances. This can include your balance, investment strategy and the costs of running the fund.
Read more about how much super you may need to start an SMSF.
How Stake Super helps
Running an SMSF doesn't mean doing all the paperwork yourself.
Stake Super helps with:
SMSF setup
Ongoing administration
Annual accounting
Independent audits
Annual return preparation and lodgement.
That means you stay in control of your investments while we help take care of the ongoing admin.
Ready to take control?
If you're exploring SMSFs or ready to get started, we're here to help.
Get started online or speak to a Stake Super specialist.
This is not financial product advice, nor a recommendation that a self-managed super fund (‘SMSF’) may be suitable for you. Your personal circumstances have not been taken into account. SMSFs have different risks and features compared to traditional superannuation funds regulated by the Australian Prudential Regulation Authority (‘APRA’). Stake SMSF Pty Ltd, trading as Stake Super, is not licensed to provide financial product advice under the Corporations Act. This specifically applies to any financial products which are established if you instruct Stake Super to set up an SMSF. When you sign up to Stake Super, you are contracting with Stake SMSF Pty Ltd who will assist in the establishment and administration of an SMSF under a ‘no advice model’. You will also be referred to Stakeshop Pty Ltd to enable your trading account and bank account to be set up in order to use the Stake Website and/or App. For more information about SMSFs, see our SMSF Risks page.
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.
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