Would an SMSF be suitable for me?

A Self-Managed Super Fund (SMSF) gives members direct control over how their retirement savings are invested and managed. For the right people, an SMSF can be a powerful wealth-building and estate planning vehicle. Here’s a quick guide to the advantages, who an SMSF may suit, and how we can assist.

What are the advantages of an SMSF?

  • Investment control and choice – members of an SMSFs, also acting as trustees of the fund, can invest in a wide range of assets permitted under the superannuation laws and the SMSF’s deed, including:
  • Listed and unlisted shares, ETFs and managed funds.
  • Term deposits and cash.
  • Direct property, including business real property (e.g. commercial premises leased to your own business or an unrelated party) and residential property.
  • Government and corporate bonds.
  • Physical gold, silver and other bullion.
  • Collectables and personal-use assets such as artwork, jewelry, coins, memorabilia, motor vehicles and motorcycles, even wine and spirits (subject to storage, insurance and related-party rules).
  • Private company shares and units in unlisted trusts (subject to in-house asset and related-party restrictions)
  • Cryptocurrencies including Bitcoin and other alternative coins.
  • Ability to pool resources – up to six members (e.g. couples or family groups) can combine balances into a single fund, sharing costs and investment opportunities.
  • Tax planning flexibility – trustees can time the realisation of capital gains and losses, implement contribution reserving strategies, in-specie transfer allowable assets in/out of the SMSF, and better manage pension accounts to suit the members’ specific circumstances.
  • Estate planning flexibility – tailored binding death benefit nominations, the ability to pay benefits “in-specie” (as an asset, not just cash), and nominated trustees retain control over how death benefits are paid (as opposed to relying on a large retail/industry fund’s discretion and process timing constraints).
  • Borrowing to invest – SMSFs can use a Limited Recourse Borrowing Arrangement (LRBA) to acquire a single asset within the fund. From 10 August 2026, new property LRBAs can only be used to acquire business real property (commercial property used in a business). SMSFs can still purchase residential property but will no longer be able to borrow via an LRBA to do so.
  • Transparency and engagement – trustees see exactly where and how their retirement savings are invested, in real time. This includes clear visibility over all fees and returns.
  • Cost efficiency – SMSF costs are largely fixed and not based on a percentage of the member balance value each year, compared to most retail/industry funds which apply percentage-based fees. So the larger an SMSF grows, the more cost-effective it generally becomes.

Who could an SMSF be suitable for?

When considering how best to put your superannuation savings to work, an SMSF may suit:

  • People wanting direct investment control and a wider range of investment opportunities.
  • Business owners wanting their SMSF to own their business premises.
  • Property investors wanting to own commercial or residential property.
  • Individuals or couples/family groups wanting to combine their balances and/or invest in a specific asset.
  • Those seeking greater estate planning control or more sophisticated tax planning/pension strategies.
  • People willing and able to take on the time, record-keeping and legal responsibilities of being an SMSF trustee. Key responsibilities include making investment decisions, keeping accurate records, and managing annual compliance including lodgement of audited Financial Statements and Taxation Return.

Taking the next step

Whether an SMSF is right for you depends on your personal circumstances and future goals, and the responsibilities you’re willing to take on as a trustee. If you’d like to explore whether an SMSF could be beneficial to you, please contact us. We’d be happy to talk you through the opportunities and obligations involved and help you decide whether it’s the right path for you.

 

This article is general information only and does not take into account your personal objectives, financial situation or needs. Please contact our office to discuss whether an SMSF is right for you before acting on any of the above.