Is an SMSF investment strategy legally required?

Yes. Section 52B of the Superannuation Industry (Supervision) Act 1993 requires every SMSF to prepare, implement and regularly review a written investment strategy covering risk, return, diversification, liquidity, ability to discharge liabilities and whether to hold insurance for members.

How often does the SMSF investment strategy need to be reviewed?

At least annually, and whenever a material event occurs — a new member joins, a pension is commenced, a large rollover lands, a member dies, or the asset allocation drifts well outside the documented ranges. Document the review with a trustee minute even if nothing changes.

Can I copy a generic SMSF investment strategy template?

You can use a template as the skeleton, but the content must reflect your fund's actual circumstances. Auditors and the ATO routinely reject 'one-size-fits-all' strategies that don't address the members' ages, target allocations or specific risks. This template prompts you for the trustee-specific content the rules require.

Does the strategy have to specify exact percentages for each asset class?

It has to address diversification meaningfully. A range (e.g. Australian shares 20%–50%) is acceptable provided the bands are narrow enough to be a real constraint and the trustees can explain why. A blanket 0%–100% for every asset class is not an investment strategy and will be flagged.

Do I need to consider insurance in the SMSF investment strategy?

Yes — section 52B(2)(f) explicitly requires trustees to consider whether to hold life, TPD or income protection insurance for each member. You can decide not to hold insurance, but the decision and the reasoning must be documented in the strategy.

What happens if my SMSF doesn't have a current investment strategy?

It's a reportable contravention. The auditor must lodge an Auditor Contravention Report, the ATO can apply administrative penalties (currently $3,300 per trustee), and in serious cases the fund can be made non-complying — which strips the 15% concessional tax rate and applies the top marginal rate to the entire fund balance.

Free template

SMSF investment strategy template (2026)

A free, section 52B-compliant template Australian SMSF trustees can complete in under an hour. Covers risk, return, diversification, liquidity, insurance and the trustee review schedule — everything your auditor and the ATO expect to see.

What's inside the template

Section 52B of the Superannuation Industry (Supervision) Act 1993 sets out exactly what every SMSF investment strategy must cover. This template walks trustees through each requirement with prompts and the fillable tables that auditors expect to see.

Fund details

Trustee structure, members, ABN, strategy date and review due date.

Investment objectives

Target return, risk tolerance, investment horizon.

Asset allocation ranges

Min / target / max % for each asset class — including crypto.

Diversification

How the chosen allocation diversifies risk across asset classes.

Liquidity & liabilities

Expected outflows: pensions, lump sums, expenses, audit.

Risk management

Market, concentration, credit, currency and regulatory risk.

Insurance for members

Life, TPD, income protection — required by s52B(2)(f).

Derivatives & LRBAs

When (if) the fund will use them and the trustee preconditions.

Review schedule

Annual reviews and event-driven reviews — pension start, large rollover, market shock.

Trustee resolution

Signature block to record trustee adoption of the strategy.

Download the free PDF template

Editable in any PDF reader. Email and a quick name only — no credit card.

How to use it

Download the PDF and complete each field in the trustees' own words — generic statements are routinely rejected by SMSF auditors.
Set asset allocation ranges narrow enough to be a real constraint. A 0%–100% range for everything is not an investment strategy.
Address insurance for every member individually — the decision to hold or not hold insurance must be documented.
Have every trustee (or director of the corporate trustee) sign the resolution at the back of the template.
Diarise an annual review. Re-sign when material events occur — new member, pension commencement, large rollover, member death.

General information only — not personal financial advice. easySMSF does not hold an AFSL. Trustees remain responsible for the content of their fund's investment strategy.