When does an SMSF actually make sense?
SMSFs can be powerful — but they’re not “just another super fund”. They’re a regulated structure with ongoing responsibilities. If you’re considering an SMSF, these are the key questions that determine whether it makes sense.
1) Are you doing it for the right reason?
The best reasons tend to be control, flexibility, and a clear strategy. The risky reasons tend to be “someone told me I have to” or “I want to buy one specific asset without thinking through the rules”.
2) Do you have enough balance for it to be cost-effective?
SMSFs have fixed running costs (admin, audit, accounts, compliance). If the balance is too low, those costs can chew up returns.
Your existing SMSF brochure uses a practical checkpoint many people use as a starting point: do you have at least $150,000 in super (or the ability to build to that level)?
Your existing SMSF brochure uses a practical checkpoint many people use as a starting point: do you have at least $150,000 in super (or the ability to build to that level)?
3) Are you willing to do the governance work?
Even if professionals assist, the trustee obligations still sit with you. That means record-keeping, compliance, and decisions being made correctly and on time.
4) Do you have a real investment strategy (not just a wish list)?
A good SMSF strategy looks like: risk tolerance, diversification, liquidity, cash management, and an objective for why the fund exists. “Buy X and hope” is not a strategy.
5) Are you comfortable with the trade-offs?
- More control comes with more responsibility.
- More flexibility comes with stricter compliance expectations.
- The structure can be great — but it’s not a shortcut.
In a nutshell
An SMSF can make sense when your balance, strategy, and willingness to manage responsibilities all line up. If you want, we can help you compare an SMSF to staying in an APRA fund and sense-check whether it’s worth it.
General information only — not advice. Consider licensed financial advice for investment decisions.
If you would like to talk through how this applies to your situation, you are welcome to book an appointment or contact us.