A self-managed super fund gives you control over your investments, but you become the trustee and take on the legal duties and costs that come with it.

Reviewed 31/10/2026. General information only, not personal advice.

The key difference: who's responsible

With an industry fund (or any APRA-regulated fund), a professional trustee runs the fund, invests the money according to the options you choose, and handles compliance.

With a self-managed super fund (SMSF), you and the other members are the trustees. You decide the investment strategy and choose the investments, and you're legally responsible for keeping the fund within the rules. SMSFs are regulated by the ATO rather than APRA.

• Trustee: Industry fund: A professional trustee company. SMSF: You and the other members (up to six)
• Regulator: Industry fund: APRA (and ASIC for disclosure). SMSF: The ATO
• Investment choice: Industry fund: A menu of options chosen by the fund. SMSF: Almost anything allowed under super law and your investment strategy, including direct shares and property
• Costs: Industry fund: Usually a percentage of your balance plus a fixed fee. SMSF: Mostly fixed costs: accounting, audit, ATO levy and any advice or software
• Admin and compliance: Industry fund: Handled by the fund. SMSF: Your responsibility, usually with an accountant and auditor
• Insurance: Industry fund: Default cover usually available. SMSF: Must be arranged separately if wanted
• Compensation if something goes wrong: Industry fund: Access to AFCA for complaints. SMSF: No access to AFCA for disputes between trustees, and no government compensation for theft or fraud

Why people consider an SMSF

• Control: choosing exactly what the fund invests in
• Investment range: direct shares, term deposits, property and other assets
• Family pooling: up to six members can combine balances in one fund
• Estate and tax planning: more flexibility in how benefits are structured, within the rules

What you take on

• Time: running a fund, keeping records and making decisions takes ongoing effort
• Legal duties: the sole purpose test, investment strategy, separation of assets and annual audit are all your responsibility
• Costs: fixed costs apply whatever your balance
• Insurance: default cover from your current fund may end if you roll everything over
• Penalties: breaching the rules can bring significant penalties, and the trustees are personally responsible

Questions to ask yourself

1. Do I want to spend time running my super, or would I rather a fund did it?
2. Is my balance large enough that fixed costs are reasonable?
3. Do I have, or will I have, a clear investment strategy?
4. What happens to my insurance if I move?
5. What happens to the fund if I can no longer manage it?

An SMSF suits some people well and others not at all. We don't recommend one structure over another on this page. That depends on your circumstances.

Weigh it up for your own situation

This page explains how the options generally compare. Which one suits you depends on your goals, balance, health, family and the rest of your finances. Book a free initial discussion or call 07 3733 1731. Meet face to face in Eight Mile Plains, or online anywhere in Australia.

Frequently asked questions

How much do I need to start an SMSF?

There's no legal minimum, but an SMSF has fixed yearly costs, including the annual audit, accounting and the ATO supervisory levy. Because those costs don't shrink with a smaller balance, SMSFs are generally less cost-effective for smaller balances. ASIC's Moneysmart website has guidance on what to consider.

How many members can an SMSF have?

An SMSF can have up to six members. Generally, every member must be a trustee (or a director of the corporate trustee), and no member can be an employee of another member unless they're related.

Can I buy property in an SMSF?

An SMSF can invest in property if it suits the fund's investment strategy and meets the sole purpose test and other rules. You generally can't live in it or rent it to a related party, and borrowing to buy property has strict rules. It's an area where personal advice matters.

Related reading

• Superannuation Advice
• Industry vs retail super funds
• Consolidating your super