What is a self-managed super fund?

A self-managed super fund (SMSF) is a private superannuation fund that you manage yourself. Unlike industry or retail super funds, the members of an SMSF are responsible for all parts of the fund including tax, investing, and compliance.

Put simply, an SMSF is a way of saving for your retirement that gives you ultimate responsibility over your superannuation.

Key facts about SMSFs

$9,104

Median total cost to run an SMSF in 2021–22 financial year

(ATO, 2024)

100+ hours

Average time it takes per year to manage an SMSF

(Moneysmart, 2023)

Pros and cons of opening an SMSF

While there are reasons why someone might choose to open an SMSF, it’s important to understand some of the risks involved as well.

Benefits of an SMSF

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    You can buy direct residential property as an investment (but keep in mind you and your family can't live in it).

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    You can invest in rare asset classes like art, stamps, or physical gold (but keep in mind you and your family can't access or use them).

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    You have the freedom and flexibility to make investment decisions quickly and change your assets as the market changes.

Disadvantages of an SMSF

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    You must comply with legal, compliance, and taxation requirements or you could face heavy fines and/or end up in court.

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    It can be hard to maintain and very time-consuming, particularly with administration and reporting obligations.

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    You need industry knowledge and it can be difficult to control your own investments. You may not end up with the returns you need to fund your retirement.

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    Unlike other super funds, there is no compensation scheme to protect you from theft or fraud.

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    It can be very expensive to manage, particularly if you have a lower account balance.

Take control with up to different 16 investment options

You don't have to set up an SMSF to choose your own investments. If you want more control over your QSuper account, you can mix and match a range of investment options without having to worry about the admin and legal requirements that come with managing an SMSF.

Diversified options

Choose from a range of pre-mixed diversified options that we've designed for different goals and manage for you.

Find out more

Asset class options

Use our range of asset class options as building blocks to mix and manage your own investment portfolio.

Find out more

 
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Self-manage your super today

If you already have a QSuper account, you can check or change your investment strategy by logging in to Member Online.

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FAQs about self-managed super funds

Still thinking about starting an SMSF? Here are some frequently asked questions to help you decide if it's right for you.  

People can wind up their SMSF for many different reasons, including:

  • Illness or death of someone in your SMSF
  • Relationship breakdown with someone in your SMSF
  • It took too much time to manage
  • Accounting fees cost too much
  • Didn’t make enough investment returns

More information about how to close your SMSF.

According to Moneysmart, you should only set up an SMSF if you are 100% committed and understand the level of work and risk involved. You should also speak to a financial adviser about whether it is the right option for you before taking action. The Australian Taxation Office (ATO) website has some good questions to ask yourself if you're thinking about starting an SMSF.

If you'd still like to set up a self-managed super fund, the ATO has a step-by-step process to help guide you.

You can directly buy residential property as an investment in your self-managed super fund, but keep in mind you and your family can't live in it, even after you've retired.

How long it takes to set up a self-managed super fund depends on how involved you want to be. But typically, the ATO recommends allowing 4-6 weeks when setting up your SMSF.

Self-employed people don't usually have to pay superannuation guarantee (SG) contributions by law, but this can depend on how you've set up your business. And just because it's not compulsory to pay super doesn't mean you can't set yourself up for retirement. As a sole trader, you can choose to make personal contributions to your super fund (including a self-managed super fund) directly from your bank account as often as you'd like.

A financial adviser can help support you if you decide to self-manage your super as a sole trader.

Take control of your QSuper account

Join the nearly 2.4 million Australians we're empowering to take control of their tomorrow.

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