SMSF Advice
Should You Set Up An SMSF? Almost Certainly Not.
I am an SMSF Specialist and I have worked with self-managed funds for over a decade. For nearly everyone who asks me, the answer is no. If you already have one, I will tell you honestly whether it is earning its keep, and how to wind it up if it is not.
$330, credited against your advice fee. If you do not need advice, I will tell you.
Four consultations a week.
What An SMSF Actually Is
Think about your bank. Your money is in your own account, and everyone else's is in theirs. Everyone wants the same thing: security and interest. Why would you go to the cost, risk and trouble of setting up your own bank just for yourself?
Super is no different. In a large fund you have your own account, you control your own money, and you choose how it is invested. In an SMSF there is nobody else in the fund. It is just you. So you run the whole fund.
Running the fund does not mean managing the investments. Almost every super fund lets you do that. It means doing the paperwork.
The Control Myth
Control is the big sales pitch, and it works because it implies that without an SMSF you are not in control of your super. You are. You already choose your fund, your investment option and your contributions.
What an SMSF adds is the administration: accounts, an annual audit, tax returns, a trust deed and an investment strategy. That is why self-managed funds are rarely self-managed. The overwhelming majority are run by an accountant, an adviser, or both.
It is a bit like throwing away your washing machine and washing your clothes by hand.
What You Do Not Get
- Better tax rates. Every super fund is taxed under the same law
- Better investments. There is nothing an SMSF can buy that makes up for its costs
- Lower fees. Every SMSF needs an accountant and an auditor, and most have an adviser and a platform on top
- Less work. You become the trustee, and legally responsible for the fund
- More safety. If something goes wrong, you are largely on your own
The Risks Nobody Mentions
- Fraud.SMSF trustees are a known target for scammers, and money lost from an SMSF is generally not covered by the compensation arrangements that protect members of large funds.
- You are outside the flags.Having an SMSF is like swimming at an unpatrolled beach. Nothing may go wrong. If it does, there is nobody there to help.
- Insurance.Life insurance is often harder to arrange and more expensive through an SMSF.
- Your estate.What happens to your super when you die is more complicated in an SMSF, especially for blended families.
- Living overseas.Moving abroad can cause serious problems for a self-managed fund.
- The rules.Super law is complicated and changes often. As trustee, a breach is your responsibility, and serious breaches bring penalties.
What About Property?
Property is the reason most people are sold an SMSF. If it is residential, you and your relatives cannot live in it, holiday in it or rent it, and the rules on borrowing are tight.
The law also changed in 2026. Since 10 August 2026, a new SMSF loan can only be used to buy property if it is business real property, so borrowing through an SMSF to buy an ordinary residential investment property is no longer allowed. Loans and contracts in place before that date are not affected.
Whenever someone is recommending an SMSF so that you can buy a property through it, ask what they earn if you say yes.
An SMSF Against A Large Fund
| Comparison | A Typical SMSF | A Low-Cost Industry Fund |
|---|---|---|
| Who does the paperwork | You, your accountant and an auditor | The fund |
| Who is legally responsible | You, as trustee | The fund's trustee |
| Annual costs | Accounting, audit, ATO levy, often ASIC, adviser and platform fees | One low fee, taken as a percentage |
| Tax rules | The same | The same |
| If something goes wrong | Largely your problem | A regulated trustee and compensation arrangements |
| Your time | Hours every year | Close to none |
Already Have One?
Do not lose sleep over it. Your fund is not about to blow up. But there is a good chance you are paying more than you need to, for a result you could get with far less effort.
In a Statement of Advice, I review what the fund holds, add up what it really costs each year in dollars, and compare that with a low-cost fund on the same balance. If it is worth keeping, I will say so. If it is not, I map out the wind-up step by step, in the order that keeps the tax down.
SMSFs, Answered
Should I set up an SMSF?
For nearly everyone, no. An SMSF costs more, takes more of your time and carries more risk than a low-cost industry fund, and it offers no tax or investment advantage in return.
How much do I need for an SMSF to be worth it?
There is no balance at which an SMSF becomes worth it on its own. A fund that would simply hold shares, ETFs and cash is usually cheaper and easier inside a large fund at almost any balance.
Is an SMSF better than an industry fund?
No, with rare exceptions. The laws and tax rates are identical. The difference is who does the work and who carries the risk, and in an SMSF that is you.
Does an SMSF give me more control?
It gives you more administration. You already control your money, your investment option and your contributions in an ordinary fund.
Can an SMSF buy property?
An SMSF can own property, but if it is residential, you and your relatives cannot live in it or rent it. Business premises are the exception: a fund can lease them to your own business at market rent. Since 10 August 2026 a fund can no longer take out a new loan to buy ordinary residential property: new borrowing is limited to business real property. Even where it is allowed, I rarely think it is a good idea.
How do I close an SMSF?
Sell or transfer the assets, roll the balances to another fund, then lodge the final return and audit. I plan the order so you do not pay more tax than you need to.
Can you set one up for me?
If you are one of the rare cases where it makes sense, I advise on the structure and what it should hold. The establishment paperwork is done by an accountant or administrator, and I am not paid by them.
Where are you based?
Level 12, 14 Martin Place, Sydney. I advise clients across Sydney and the rest of Australia by Zoom, Teams or phone.
General advice only. It does not take your objectives, financial situation or needs into account. Consider whether it is appropriate for you before acting on it.
Book A Consultation
If you do not need advice, you find out for $330, not $6,600.
- 45 minutes with the adviser himself, not a junior
- A fixed quote on the call, if advice is warranted
- The $330 is credited in full if you proceed
Why $330 and not free? A free first meeting is usually paid for later, through ongoing fees. I would rather you paid once for my time and owed me nothing.
Pay $330 now. A consultation, not an advice session. Reschedule up to 48 hours before.