For many Australians in their 30s and 40s, it’s an ideal stage of life to take control. You’ve built some superannuation, you have the financial experience to make informed decisions, and you still have decades for your investments to grow.
But the reality is, an SMSF is not for everyone. It comes with real responsibilities, legal obligations, and ongoing work. The key is knowing, before you start, whether it’s the right choice for you, and setting it up in a way that gives you the best chance of long-term success.
The most effective SMSFs are built with purpose. Before you begin, ask yourself: Why do I want an SMSF?
Some common and powerful reasons include:
Control: Decide exactly where and how your retirement savings are invested.
Choice: Access a broader range of assets than most super funds allow.
Flexibility: Tailor strategies to your family, business, or personal goals.
Alignment: Invest in line with your personal values or interests.
With an SMSF, you can move beyond the pre-set investment menus of most APRA-regulated funds. Depending on your strategy and compliance, you could invest in:
Australian and global shares (including small caps and niche markets)
Direct property (residential or commercial)
Precious metals and commodities
Private equity and unlisted investments
Infrastructure projects
Cryptocurrencies and digital assets
This flexibility is exciting, but it also comes with the responsibility to ensure every decision meets superannuation law, your fund’s trust deed, and your investment strategy.
There’s no legal minimum balance to open an SMSF, but there is a practical one.
Independent research from the SMSF Association shows that around $200,000 in combined member balances is generally the point where SMSFs become cost-effective compared to most APRA-regulated funds.
However, your starting point may be higher or lower depending on:
How much administration and investment management you’ll do yourself.
Whether a large contribution will be added soon after setup.
How much you plan to outsource to professionals, with consideration of their fees.
While you can run an SMSF yourself, certain tasks like the annual audit, must legally be done by a qualified professional. Most trustees choose to work with accountants, administrators, or advisors to save time and avoid costly mistakes.
Think of $200,000 not as a barrier, but as a guide to starting strong and staying competitive over time.
Every SMSF must have trustees. Either:
Individual trustees: Each member acts personally as a trustee.
Corporate trustee: A company is the trustee, and each member is a director.
Your choice affects administration, asset ownership, succession planning, and flexibility. Many experts recommend a corporate trustee for long-term adaptability. We will unpack this in detail in part two of this series – stay tuned for an upcoming article.
Not everyone can be a trustee (or director of a corporate trustee). You must:
Be at least 18 years old.
Not be under a legal disability (e.g. mental incapacity).
Not be an undischarged bankrupt.
Not have been disqualified by the ATO.
Trustees must act honestly, exercise care and diligence, and keep accurate records. Importantly, all trustees are personally liable for the fund’s actions, and fines cannot be paid from SMSF money, they must come from your own pocket.
If you plan to live or work overseas, your SMSF must meet the definition of an Australian super fund to keep its concessional tax treatment. This means:
It’s established in Australia.
Central management and control are ordinarily in Australia.
At least 50% of active member balances belong to Australian residents.
If you move overseas, you may need to appoint a legal personal representative (via an Enduring Power of Attorney) or restructure the fund.
Setting up an SMSF involves more than forms. You’ll need:
A compliant trust deed written for SMSF law.
A company constitution (if using a corporate trustee).
Trustee declarations and member applications.
Resolutions to appoint trustees and open bank accounts.
If you plan to borrow within the SMSF, you’ll also need a Corporate Trustee, a bare trust to hold the asset, and deed provisions that allow for borrowing.
Before your SMSF can receive contributions or rollovers, you’ll need to:
Apply for an ABN and TFN.
Register with the ATO.
Wait until your fund appears on Super Fund Lookup.
Set up a bank account and an electronic service address (ESA) for rollovers and contributions.
Your investment strategy is your roadmap for the fund’s success. It should cover:
Asset allocation and diversification.
Risk tolerance.
Liquidity needs (for expenses and benefits).
Insurance considerations for each member.
Review your strategy regularly, especially when members join or leave, or when your circumstances change.
Ongoing SMSF costs may include:
Annual audit fees.
Tax return preparation and lodgement.
Administration platform costs.
ATO supervisory levy.
Investment-related expenses (brokerage, management fees, property costs).
Also consider contingency planning, for example what happens if a member dies, becomes disabled, divorces, loses income, or moves overseas? ASIC expects trustees to think ahead.
An SMSF isn’t for everyone, but for the right person at the right stage of life, it’s a powerful way to take control of your retirement savings.
If you’re in your 30s or 40s, you’ve got time on your side to make it work. With a clear “why,” a strong starting balance, the right trustee structure, and a plan for costs and compliance, you can create an SMSF that’s competitive, flexible, and aligned with your goals.
This information is provided for your assistance and education about SMSFs. It is not an opinion or recommendation. You should consider obtaining
appropriate advice before making any decision about SMSFs.
This document contains general information and does not constitute legal or taxation advice. If you need legal or taxation advice, we recommend you speak to a qualified advisor.
Find an office