Question 1

Is an investment strategy a legal requirement for every SMSF?

Accepted Answer

Yes. Section 52B of the SIS Act requires the trustees of every self managed super fund to formulate, review regularly and give effect to an investment strategy. There are no exceptions for small funds, single-member funds or funds holding only cash.

Question 2

Can I write the investment strategy myself, or do I need a professional?

Accepted Answer

You can write it yourself — there's no requirement for a licensed adviser or accountant to prepare it. What matters is that the document shows the trustees genuinely considered each s52B factor for these members. Many trustees draft their own and have their administrator or accountant sanity-check it against what the auditor will look for.

Question 3

How long should an SMSF investment strategy be?

Accepted Answer

One to two pages is typical for a diversified fund. A fund holding a single property or a concentrated position needs more words, not fewer — the document must acknowledge the concentration and justify it. A ten-page generic template with no fund-specific reasoning is worse than a tight two-pager that reflects your actual portfolio.

Question 4

What's wrong with a 0%–100% range on every asset class?

Accepted Answer

It demonstrates no consideration of risk, return, diversification or liquidity — which is exactly what s52B requires. Auditors and the ATO treat blanket ranges as evidence the trustees didn't think about the strategy at all. Use ranges that genuinely constrain the portfolio, wide enough that you don't need to rewrite the document every time you rebalance.

Question 5

Do I need a new strategy every time I buy or sell an investment?

Accepted Answer

No — that's what the ranges are for. Individual buy and sell decisions within your documented ranges don't require a strategy update. You do need to revisit the strategy when circumstances change materially: a new member, a pension starting, a large rollover, or the portfolio drifting outside its bands.

Question 6

How do I prove the strategy was reviewed each year?

Accepted Answer

A signed trustee minute or resolution recording that the strategy was reviewed, dated, and noting either that it remains appropriate or what changed. The minute is the evidence the independent auditor asks for. Reviewing without recording it is, for audit purposes, the same as not reviewing it.

Question 7

Can my SMSF invest in just one asset, like a single property?

Accepted Answer

Yes, concentration is permitted — the SIS Act doesn't force you to diversify. But regulation 4.09 requires you to have considered diversification, so the strategy must acknowledge the concentration and explain why it's appropriate for the members: the risk accepted, how expenses and pensions will be paid from an illiquid asset, and the members' time horizon.

Question 8

Does the strategy need to mention insurance for members?

Accepted Answer

Yes — trustees must consider whether to hold insurance (life, TPD or income protection) for each member. 'Considered' doesn't mean 'purchased': a documented decision that cover isn't appropriate — for example members already hold equivalent cover outside super — satisfies the requirement, provided the reasoning is recorded.

Question 9

Can my strategy allow crypto in the fund?

Accepted Answer

Yes, provided three things line up: the trust deed doesn't forbid digital assets, the strategy documents the risk and volatility accepted and how holdings are valued and stored, and the crypto is held through a supported platform so the administrator and auditor can verify ownership and value. easySMSF administers crypto only where it's held through supported platforms with a direct data feed — not private or hardware wallets.

Question 10

What's the difference between the investment strategy and the trust deed?

Accepted Answer

The deed is the fund's rulebook — it permits or forbids asset types regardless of what any strategy says. The strategy is your documented investment plan inside those bounds, and you can change it by trustee resolution without amending the deed. The strategy can never permit something the deed or the SIS Act forbids.

Question 11

Does the auditor check whether my investments were good ones?

Accepted Answer

No. The auditor checks compliance, not performance: whether the fund had a current strategy, whether the investments actually made fall within the documented ranges, and whether reviews were recorded. A fund can lose money and be fully compliant; a profitable fund with no strategy is in breach.

Question 12

What happens if the auditor finds the fund has no current strategy?

Accepted Answer

The auditor must lodge an Auditor Contravention Report with the ATO. The ATO can then apply administrative penalties to each trustee personally, and persistent or serious breaches can lead to the fund being made non-complying — which removes its concessional tax treatment. It's one of the most commonly reported contraventions and one of the easiest to avoid.

Question 13

My fund is in pension phase — does the strategy need to change?

Accepted Answer

Almost always yes. Pension phase changes the liquidity requirement (the fund must pay minimum pension amounts when due) and usually shortens the members' investment horizon. The strategy should be reviewed and minuted when a pension commences, even if the asset mix barely changes.

Question 14

Can I use a template for my SMSF investment strategy?

Accepted Answer

A template is a fine starting point — it ensures you cover all six s52B considerations — but it must be completed with your fund's actual objectives, ranges and reasoning. A downloaded template with the blanks left generic fails the 'genuine consideration' test. Complete it, minute its adoption, and review it annually.

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