Self Managed Super Funds

A self-managed super fund (SMSF) is a private super fund that you manage yourself. SMSFs are different to industry and retail super funds.

When you manage your own super, you put the money you would normally put in a retail or industry super fund into your own SMSF.  You choose the investments and the insurance.

There are two variations to the types of structures you can choose for your SMSF: individual trustees or a corporate trustee.  Your SMSF can have no more than six members. As a member, you are a trustee of the fund — or you can get a corporate trustee. In either case, you are responsible for the fund.

While having control over your own super can be appealing, it’s a lot of work and comes with risks. If you set up an SMSF, you’re in charge – you make the investment decisions for the fund and you’re held responsible for complying with the super and tax laws. It’s a major financial decision and you need to have the time and skills to do it. There may be better options for your super savings. If you’re after a more passive approach to managing your super than an industry or retail fund might be more suitable for you.

An SMSF must be run for the sole purpose of providing retirement benefits for the members. Additionally, all decisions you make as trustee of your SMSF must be in the best financial interests of the members. Regulated by the ATO, it is only worth setting up your own super fund if you’re 100% committed and understand what’s involved.

If you’re considering a SMSF or would like to talk through your super, don’t hesitate to contact us at STS Accounting.