An SMSF is the only kind of super fund where you are the trustee. That one fact explains everything else about it: the control, the flexibility, the paperwork, the audit and the personal penalties. Around it sits a body of law (mainly the Superannuation Industry (Supervision) Act 1993 and the tax Acts) that the ATO enforces directly against trustees.
This page is the starting point for our SMSF library. It explains how a fund works and who it tends to suit, maps the rules that matter for 2026–27, and links to 20 detailed guides. We prepare SMSF accounts, member statements and annual returns, and we coordinate the independent audit. We don't tell you whether to start, keep or close a fund, or what to invest in: that's financial product advice, given by a licensed financial adviser. Everything here is general information.
What is a self managed super fund?
An SMSF is a trust set up for one purpose: to provide retirement benefits (or death benefits) to its members. It has the same tax concessions as any complying super fund. The difference is who runs it.
| Feature | SMSF | Industry or retail fund |
|---|---|---|
| Who makes the decisions | You and the other members, as trustees | A professional trustee board |
| Number of members | 1 to 6 | Thousands to millions |
| Regulator | The ATO | APRA (and ASIC) |
| Investment choice | Anything the law, deed and investment strategy allow, including direct property and unlisted assets | A menu of options |
| Annual audit | Required, by an independent ASIC-registered SMSF auditor | Done at fund level |
| Who pays penalties for breaches | Trustees personally | The fund's trustee company |
| Costs | Mostly fixed dollar amounts | Mostly a percentage of your balance |
| Compensation for fraud or theft | Not covered by the government's financial assistance scheme | May be covered |
Every member must be a trustee, or a director of the company that acts as trustee. A single-member fund needs either two individual trustees (the member plus one other person) or a company with the member as director. Our guide to corporate vs individual trustees explains why most funds are better off with a company.
Who does an SMSF actually suit?
There's no legal minimum balance. ASIC's current guidance to advisers treats the starting balance as one factor among many, and notes that lower-balance funds tend to have higher costs as a share of the balance and lower net returns. In our experience an SMSF works best for people who tick most of these boxes:
- A balance big enough that fixed costs don't bite. Accounting, audit and the ATO levy are mostly fixed dollar amounts. Our SMSF costs guide shows how to work out what they mean as a percentage of your fund.
- A reason to want control. Holding your business premises, direct shares, or co-investing with family are the common ones.
- Time and interest. Trustees sign minutes, review the investment strategy, keep records and answer the auditor. If that sounds like a chore you'll skip, an SMSF will hurt you.
- Family members who get along. Up to six members can pool money, but they also share decisions and liability. Disputes in an SMSF are slow and expensive to unwind.
- A plan for later. Who runs the fund if you lose capacity or die? If there's no good answer, see our guide to SMSF incapacity and succession.
An SMSF is often the wrong choice for someone with a modest balance who mainly wants low fees and good default investing, someone who doesn't want trustee duties, or someone who needs the insurance a large fund provides cheaply. Our comparison of SMSF vs industry super sets out the trade-offs honestly.
Key point: Deciding whether to set up or wind up an SMSF is financial product advice under the Corporations Act. A licensed financial adviser makes that recommendation. We work alongside your adviser on the tax, accounting and compliance side.
What rules does an SMSF have to follow?
Most SMSF problems come from a short list of rules. This map shows each one, what it means in practice, and where to read more.
| Rule | What it means in plain English | Read more |
|---|---|---|
| Sole purpose test | The fund exists only to provide retirement and death benefits. No present-day benefit to members or relatives | Related parties and in-house assets |
| Investment strategy | A written, fund-specific strategy, reviewed regularly, that you actually follow | Investment strategy |
| Separation of assets | Fund assets held in the fund's name, never mixed with personal or business money | SMSF audit |
| Related-party acquisitions | The fund generally can't buy assets from members or relatives, except listed securities and business real property at market value | Business real property |
| In-house assets | Loans to, investments in or leases to related parties are capped at 5% of fund assets | Related parties and in-house assets |
| Borrowing | No borrowing, except a limited recourse borrowing arrangement (LRBA). New LRBAs over real property must be for business real property from 10 August 2026 | SMSF borrowing |
| Arm's length dealings | Every deal at market terms. Non-arm's length income is taxed at 45% | NALI and NALE |
| Contribution caps | For 2026–27, the concessional cap is $32,500 and the non-concessional cap is $130,000 (nil if your total super balance was $2.1 million or more at 30 June 2026) | Contributions and caps |
| Pension standards | Minimum payments each year, paid in cash by 30 June, and transfer balance reporting | SMSF pensions |
| Annual audit and return | Independent audit, then the annual return, every year | Annual return and deadlines |
Breaking these rules can lead to administrative penalties of up to 60 penalty units per trustee for the serious ones. At $364 a penalty unit from 1 July 2026, that's $21,840 each, and it can't be paid from the fund. The ATO can also issue rectification and education directions, disqualify trustees, or make the fund non-complying. A non-complying fund is taxed at the top marginal rate, and in the year it loses complying status, on the value of most of its assets too.
What changed for SMSFs in 2026?
Three changes matter for most funds this year:
- Division 296 is law. An extra tax on part of the earnings of members whose total super balance is above $3 million, with a further rate above $10 million, applies from the 2026–27 income year. Our Division 296 guide explains how it's worked out.
- No new geared residential property. Since 10 August 2026, a new LRBA used to buy real property must be for business real property. Existing arrangements, contracts exchanged before that date and refinances of existing loans are grandfathered. Buying residential property outright with fund money is still allowed.
- Payday Super. From 1 July 2026 employers pay super with each pay run, so members' employer contributions reach the fund more often. Your fund needs a working electronic service address to receive them.
Every SMSF guide in one place
Starting, running and closing a fund
- How to set up an SMSF: the steps in order, from trustees and deed to registration, bank account, rollover and a realistic timeline.
- SMSF costs: every cost from setup to wind-up, which are fixed and which are optional, and how balance affects value.
- SMSF audit: what the auditor checks, why they must be independent, the contraventions they report and how to prepare.
- SMSF annual return and deadlines: when the return is due, what's in it, and what happens if you're late.
- Corporate trustee vs individual trustees: penalties, succession, asset titles and cost, plus how to switch.
- SMSF investment strategy: what the law requires, what to cover, insurance, and when to review.
- How to wind up an SMSF: the steps, the final audit and return, rollovers and the mistakes that delay closure.
- SMSF vs industry super: an honest comparison of cost, control, insurance and protection.
Property and investments
- SMSF property: buying residential and commercial property in super, and the rules that apply after purchase.
- Business real property: buying your business premises in your SMSF and leasing them to your business.
- SMSF borrowing: how LRBAs work, the 10 August 2026 residential restriction, and safe harbour terms for related-party loans.
- Regulation 13.22C unit trusts: co-investing with family through an ungeared company or unit trust, and the rules that end the exemption permanently.
- Related parties and in-house assets: who counts as a related party, the 5% limit, and what to do if you breach it.
- NALI and NALE: when non-arm's length income and expenses push fund income to 45% tax.
Members, money in and money out
- Six-member SMSFs: when adding adult children works, and when it causes problems.
- Contributions and caps: concessional and non-concessional caps, carry-forward, bring-forward and the 30 June timing traps.
- SMSF pensions: starting an account-based pension, minimum payments, the transfer balance cap and reporting.
- Death benefit nominations: binding and non-lapsing nominations, what makes them valid, and the tax on death benefits.
- Division 296 tax: the extra tax on earnings for balances over $3 million, now law from 2026–27.
- SMSF incapacity and succession: enduring powers of attorney, successor directors and keeping the fund running.
How we help SMSF trustees
We look after the accounting and compliance side of SMSFs for trustees Australia-wide. That means the financial statements, member statements and annual return; transfer balance account reports; coordinating the audit with an approved independent SMSF auditor; and keeping an eye on caps, pension minimums and related-party issues during the year, not just at lodgement. Our SMSF accountant service explains what's included and what to send us.
Our super and SMSF agent drafts the technical work, such as checking a contribution against the caps or working out a pension minimum, and a qualified accountant reviews every figure before it reaches you or the ATO. Legal documents such as deed updates and death benefit nominations are prepared by a solicitor, and investment, contribution and pension recommendations come from a licensed financial adviser. If your SMSF sits alongside a family trust or company, our business structuring and asset protection service looks at the whole group together.
Frequently asked questions
How many members can an SMSF have?
Up to six. Every member must be a trustee (or a director of the corporate trustee), and every trustee must be a member, with limited exceptions such as a legal personal representative acting for someone. Members also can't be employees of another member unless they're relatives.
Can I run an SMSF without an accountant?
Legally you can prepare your own accounts and lodge the annual return yourself, but every fund must be audited each year by an independent, ASIC-registered SMSF auditor. In practice most trustees use an accountant or administrator, because the accounts, member statements, transfer balance reporting and tax return take technical knowledge and good software.
Is my money safer in an SMSF than an industry fund?
Not automatically. An SMSF isn't covered by the government's financial assistance scheme that can compensate members of APRA-regulated funds for fraud or theft, and you carry the investment and compliance risk yourself. What you gain is control and visibility. Whether that trade-off suits you is a question for a licensed financial adviser.
Do SMSFs pay tax?
Yes. A complying fund generally pays 15% on its taxable income, including concessional contributions, and a discount applies to capital gains on assets held for more than 12 months. Income on assets supporting retirement-phase pensions can be exempt. Non-arm's length income is taxed at the top marginal rate.
Can an SMSF buy property?
Yes, an SMSF can buy residential or commercial property if the investment strategy allows it and the purchase meets the sole purpose test and the related-party rules. From 10 August 2026, a new limited recourse borrowing arrangement can only be used to buy real property that is business real property, so geared residential purchases are off the table for new loans.
What happens to my SMSF if I lose capacity or die?
Someone needs to be able to step in as trustee or director, usually through an enduring power of attorney, and your benefits are paid under the trust deed and any valid death benefit nomination. Without planning, the fund can be left with no one able to act. Our guide to SMSF incapacity and succession covers how to set this up.
Official sources
General information only, current as at 18 October 2026. It is not personal tax, legal or financial product advice and doesn't take your circumstances into account. Talk to us before you act. Where a recommendation needs a licensed financial adviser or a solicitor, we work alongside them.