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What Are SMSFs?

A clear guide for Australians considering a Self-Managed Super Fund



A Self-Managed Super Fund (SMSF) is a type of superannuation fund that gives you full control over how your retirement savings are managed, invested, and administered. Unlike retail or industry super funds, where decisions are made on your behalf, an SMSF is run by its members — and the members are responsible for meeting the legal and compliance requirements.


If you are someone who wants to take an active role in building your wealth, an SMSF can give you flexibility, choice, and control. But it also comes with responsibilities that need to be understood before getting started.


This page explains the essentials and links to deeper guides across our SMSF Knowledge Hub.


HelloLedger What are SMSFs?

How an SMSF Works


An SMSF operates like any other super fund, with some important differences.


Here’s the basic flow:

  1. The trustees (you) make decisions. You choose investments, manage contributions and rollovers, and ensure the fund is run according to the rules.

  2. Super contributions and rollovers enter the fund. Employer contributions, salary-sacrifice contributions, or personal contributions are made directly to your SMSF.

  3. The fund invests according to a strategy. Cash, shares, ETFs, managed funds, precious metals, property or other approved assets — depending on your strategy.

  4. The fund must meet its compliance obligations each year. This includes an annual independent audit, tax return, record-keeping requirements, and trustee responsibilities.

  5. Benefits are paid out in retirement. Once you reach the relevant conditions of release, you can draw an income stream or lump sum.


The major difference: You are in control and responsible. This independence is powerful, but it must be balanced with compliance.



What Makes SMSFs Different?



An SMSF gives you several advantages:

  • Control — You choose how and where your money is invested.

  • Flexibility — You can invest in a broader range of assets than traditional super funds.

  • Consolidation — Up to six members can combine super balances in one fund.

  • Estate planning — Greater control over succession and death-benefit planning.

  • Transparency — You see exactly how your super is performing at all times.


But with this flexibility comes responsibility: trustees must ensure the fund remains compliant with superannuation and tax laws.


To explore these in detail, see:

👉 Benefits of an SMSF

👉 Disadvantages and Risks of SMSFs



Who an SMSF Is Suitable For


An SMSF may be a good fit if you:

  • Want direct control over investment decisions

  • Prefer a more hands-on approach to growing wealth

  • Have (or will have) enough super that fixed SMSF costs are efficient

  • Want access to assets not typically available in retail/industry funds

  • Are comfortable with trustee responsibilities (or engaging professional support)

  • Want greater flexibility in estate planning or business-related strategies

  • Prefer transparency and involvement in how your retirement savings are managed


This doesn’t mean you need to be a finance expert, just willing to understand your obligations and make informed decisions.


To help you decide, see:👉 Is an SMSF Right for Me?


When an SMSF May Not Be Suitable


An SMSF may not be appropriate if you:

  • Prefer not to be involved in administration or compliance

  • Want a low-touch, “set and forget” superannuation experience

  • Have a lower super balance where fees might outweigh benefits

  • Don’t have time to learn trustee responsibilities

  • Are uncomfortable acting as a trustee or director

  • Don’t intend to use the additional investment flexibility


An SMSF must be run properly. If this doesn't suit your circumstances, another type of super fund may be better.



SMSF vs Other Super Funds


Feature

SMSF

Retail Fund

Industry Fund

Who controls investments?

You (trustees)

Professional managers

Professional managers

Investment choice

Very broad

Moderate

Moderate

Administration

Managed by trustees

Fully outsourced

Fully outsourced

Cost structure

Largely fixed

% of balance

% of balance

Ideal for

People wanting control & flexibility

Investors wanting active management

People wanting simple & low-cost

Members allowed

Up to 6

Many

Many


Responsibilities of Running an SMSF


Every SMSF must comply with superannuation, tax, and audit requirements. Trustees must:

  • Act in the best financial interests of all members

  • Keep assets separate from personal assets

  • Follow the fund’s trust deed and investment strategy

  • Keep proper financial and tax records

  • Arrange an annual independent audit

  • Lodge an SMSF annual return

  • Ensure contributions and payments follow ATO rules

  • Manage rollovers, pensions, and withdrawals correctly


We help make this simple with clear annual workflows and ongoing SMSF administration support.


Learn more:👉 Trustee Responsibilities and Compliance


Key Decisions Before You Set Up Your SMSF


Before starting the setup process, you’ll need to consider:

  • Individual trustee vs corporate trustee

  • Single-member vs multi-member fund

  • Whether directors need a Director ID

  • Fund name

  • Investment approach

  • Rollovers and contributions

  • Eligibility

  • Responsibility requirements


Ready to Explore Setting Up Your SMSF?


Setting up an SMSF is an important financial decision and having the right support makes all the difference. At HelloLedger, we make the process simple, compliant and tailored to your goals.

👉 How to Set Up an SMSF (Step-by-Step Guide)

👉 Start Your SMSF Application Now

👉 Book a Call With an SMSF Specialist

 
 
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