Self-Managed Super Funds (SMSF)

A SMSF is different from other super funds because the members are also the trustees, meaning they make all the decisions about how the fund is run and how the money is invested. Unlike retail or industry funds - which are professionally managed - an SMSF gives you full control and flexibility over investment choices, but also comes with full responsibility for compliance, record‑keeping, and meeting ATO obligations.

As of June 2025, there are over 650,000 SMSFs in Australia, with a combined asset value exceeding $1 trillion.

Around 43% of SMSFs manage between $200,000 and $1 million in assets, while the average fund size is approximately $1.6 million.
The median age of members is about 63 years, and around 85% of members are aged 45 and above.

In the 2022-23 financial year, the average SMSF achieved a return of around 10.1%, with five-year annualised returns averaging 6.5%.

These results are broadly in line with, and often slightly above, the long-term returns achieved by larger industry and retail funds, demonstrating that well-managed SMSFs can deliver competitive, sustainable performance.

To establish an SMSF, you’ll need:

• A dedicated bank account for the fund.
• A legally valid trust deed outlining how the fund will operate, who can be a member, how benefits are paid, and what types of investments are permitted.
• A clear investment strategy that aligns with your financial goals and risk appetite.

The two most important annual compliance obligations of an Australian Self Managed Super Fund are an audit and the need to lodge a tax return with the ATO.

SMSF offers unique opportunities:

• Control: You decide how and where your retirement savings are invested.
• Flexibility: Choose from a wide range of investment types, including property, shares, and managed funds.
• Tax efficiency: Income earned within your fund is generally taxed at 15%, and capital gains are taxed at 10% if assets are held for more than 12 months.
• Business advantages: You can purchase your own business property and pay rent directly to your fund, effectively paying rent to yourself.

With the right advice, these benefits can work together to build long-term wealth and financial independence.

While many Australians with higher super balances consider establishing an SMSF, it’s not suitable for everyone. As a general guide, an SMSF becomes cost-effective once you have around $200,000+ or more in super, but every situation is different.

At Bizally, we help business owners and individuals assess whether an SMSF aligns with their financial goals, then assist with setup, compliance, and ongoing management, so you can focus on your future with confidence.