Self-managed super fund
What is a self-managed super fund and how does it work?
By easySMSF, SMSF Specialist Team · Updated
A self-managed super fund (SMSF) is a private super fund with up to six members. The members control the investments and are also responsible for complying with the super and tax rules. This guide explains how SMSFs work, their costs, benefits, limitations and setup steps.
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Limited-time new financial year offer — 50% off Individual and Corporate Trustee setup fees. Ends midnight AEST, 30 September 2026.
Self-managed super fund: quick answer
An SMSF is a regulated superannuation fund run by its members. It can have up to six members, who must generally be individual trustees or directors of the corporate trustee. Trustees decide how the fund invests, but they are legally responsible for its records, annual return, independent audit and compliance.
How a self-managed super fund works
The SMSF is established under a trust deed and needs trustees, a bank account, an investment strategy and registration. Money can then be rolled in from other super funds, and contributions can be accepted when the contribution rules are met. Fund money must remain separate from personal and business money.
The trustees choose and monitor the investments. Permitted holdings can include listed shares, ETFs, managed funds, cash, term deposits and direct property. Every decision must satisfy the sole-purpose test, the fund's trust deed and investment strategy, and rules covering related parties, borrowing and in-house assets.
Each financial year the fund needs accounts, an independent audit and an SMSF annual return. Trustees must also value assets, document contribution and benefit transactions, review the investment strategy and retain the required records. An administrator can prepare this work, but responsibility remains with the trustees.
Benefits can include direct investment control, consolidated family administration and fixed-fee costs rather than a percentage of the balance. Disadvantages include fixed annual costs, trustee time, legal exposure and less access to statutory compensation arrangements than members of some large regulated funds. These trade-offs should be assessed against the members' circumstances.
- Up to six members, all of whom are trustees or directors of the corporate trustee
- Fixed monthly administration fee — no percentage-of-balance charges
- Independent annual audit included in the administration fee
- Typically one to two weeks from application to an ATO-registered fund
- Rollovers from existing super funds usually complete in 3–7 business days
- Every holding must satisfy the sole-purpose test and the fund's investment strategy
Start with what an SMSF is, then the numbers on SMSF setup costs and our fixed-fee pricing. To see what a fund can hold, read SMSF investments allowed and SMSF investment options.
Trustee rules by life stage: check your preservation age, the conditions of release for super, and the current super contribution caps.
Setup cost by state: NSW · VIC · QLD · WA · SA · TAS · ACT · NT
SMSF setup steps
1. Choose the trustee structure
Select individual trustees or a corporate trustee, and confirm the members are eligible.
2. Create the fund
Execute the trust deed, appoint trustees and record the establishment decisions.
3. Register and open accounts
Apply for the fund's identifiers, open its bank account and prepare an investment strategy.
4. Fund and administer it
Arrange eligible rollovers or contributions, invest under the strategy, and complete annual accounts, audit and reporting.
Frequently asked questions
General advice warning
Figures shown are illustrative only and based on the inputs and assumptions you provide. They are general information, not personal financial product advice. Consider your objectives, financial situation and needs, and seek personal advice from a licensed financial adviser before acting. easySMSF does not hold an Australian Financial Services Licence (AFSL).