A self-managed super fund hands you the controls — and the legal responsibility. This guide covers establishing a fund, your trustee duties, the investment rules, how SMSFs are taxed across accumulation and pension phase, and when one actually makes sense. Then you can test the numbers yourself.
These are the same areas a professional adviser works through when advising on SMSFs and super tax — explained here in plain English.
Follow the path from establishing a fund, through running it compliantly and investing, to retirement and reviewing whether it's worth it. Tap any block to explore it and see how it connects.
A Self-Managed Super Fund is a private super fund you run yourself, with up to six members who are also the trustees. You make every investment decision and carry full legal responsibility. There are around 620,000 SMSFs in Australia.
Setting up involves a trust deed, choosing individual or corporate trustees, registering with the ATO for a TFN and ABN, opening a dedicated bank account, and documenting a written investment strategy. Errors at establishment are costly to fix.
Trustees must comply with the SIS Act, keep the fund's money separate, prepare annual accounts, have the fund independently audited every year, and lodge an annual return. Breaches carry penalties of up to $1.1 million and disqualification.
The fund must exist solely to provide retirement benefits. You can't get a present-day benefit — no living in a fund-owned home, no using fund assets personally. Breaching the sole purpose test can make the fund non-complying.
SMSFs can hold shares, ETFs, property and more — but all investments must be at arm's length and meet strict rules: limits on in-house assets, no buying from or leasing to related parties (except business real property), and borrowing only via an LRBA.
Earnings are taxed at 15% in accumulation (10% on capital gains held 12 months+) and 0% in pension phase. Franking credits can offset that tax — or be refunded in pension phase, making franked shares especially valuable.
In retirement the fund pays you an account-based pension with tax-free earnings, subject to annual minimum drawdowns that rise with age. The transfer balance cap ($2.0m) limits how much can sit in tax-free pension phase.
SMSFs have largely fixed running costs (accounting, audit, ATO levy), so they become cost-competitive only above a certain balance — often cited as $200,000–$500,000. Test the break-even for your numbers in the dashboard below.
Three calculators for the questions that decide an SMSF: is it cost-effective, what tax does it pay, and what must you draw in pension phase. All figures are estimates for general guidance only, using indicative current rates.
SMSF costs are largely fixed (accounting, audit, ATO levy), while an APRA fund's fees scale with your balance — so the bigger your balance, the more an SMSF's flat cost can pay off.
Accumulation-phase earnings are taxed at 15% (capital gains ≈10% if held 12 months+). Pension-phase earnings are tax-free. Franking credits offset the fund's tax and can be refunded in pension phase.
Once in pension phase you must draw a minimum percentage each year, rising with age. Earnings on assets supporting the pension are tax-free.
These calculators are simplified models for general education. They make assumptions and exclude many factors relevant to you (actual SMSF and APRA fund costs, investment fees inside an SMSF, contributions tax, exempt current pension income calculations, Division 293, and more). Before establishing or running an SMSF, get personal advice from a licensed financial adviser and a registered SMSF auditor.
Establishing a fund correctly from the start matters — mistakes are expensive to unwind. Most people use a specialist SMSF accountant or adviser.
As trustee you're personally responsible for the fund's compliance. The obligations are ongoing and the penalties for breaches are serious.
SMSFs offer broad investment choice, but every decision must comply with the rules and the fund's strategy.
The concessional tax environment is the whole point of super. Inside an SMSF it works across two phases.
When a member retires, their balance can move into a pension that pays tax-free income — within limits.
An SMSF can be closed when it no longer suits you — but it must be done properly, and obligations continue until it's officially wound up.
The questions Australians ask most before deciding whether an SMSF is right for them.
SMSFs are complex. A licensed adviser who specialises in SMSFs can assess whether one is right for you and help you set it up correctly.
SMSFs offer real advantages — control, tax efficiency and investment flexibility — but also significant responsibilities. An SMSF specialist can weigh the trade-offs honestly against your circumstances.
The information on this website is general in nature only and does not take into account your personal objectives, financial situation, or needs. It is not financial, legal, or taxation advice, and nothing on this site is intended to be relied upon as advice or to create any legally binding obligation or relationship.
While we try to keep the content accurate and current, it may be out of date, incomplete, or incorrect. Rules, rates, contribution caps, and thresholds change frequently — always verify the current figures with the ATO, ASIC's MoneySmart website, or a licensed professional.
All calculators, projections, and figures shown are for illustration and demonstration purposes only. They rely on simplified assumptions, are not predictions, quotes, or guarantees, and your actual outcome will differ.
Before acting on anything you read here, we strongly recommend you seek professional advice from a licensed financial adviser, accountant, or solicitor who can consider your individual circumstances. AdviceGenie does not hold an Australian Financial Services Licence (AFSL) and does not provide financial product advice as defined in the Corporations Act 2001 (Cth).
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