Things you need to know

SMSF Setup: Things You Need to Know

Setting up a Self-Managed Super Fund (SMSF) is an exciting step towards taking control of your retirement savings. But before you get started, it’s essential to understand what’s involved — from legal responsibilities to ongoing compliance. This guide explains the key things you should know before setting up your SMSF.

What Is a SMSF?

A Self-Managed Super Fund is a private super fund that you manage yourself. It can have up to six members, and each member must also act as a trustee (or a director of a corporate trustee). This means you make the investment decisions and are legally responsible for meeting all compliance and reporting obligations.

You can learn more about how SMSFs work directly from the ATO’s overview of SMSFs.

Trustee Responsibilities

Being a trustee is a serious commitment. Trustees must make decisions in the best interest of all members, follow superannuation laws, and ensure the fund remains compliant at all times.
Before you begin, you’ll need to sign a declaration confirming you understand your duties. The ATO’s trustee declaration page outlines these requirements in more detail.

If you want to simplify future administration, consider appointing a corporate trustee rather than individual trustees — this structure often makes it easier to manage ownership changes and asset titles.

How to Set Up an SMSF

Setting up your SMSF involves several key steps:

  1. Decide on your trustee structure (individual or corporate).
  2. Prepare and sign your trust deed.
  3. Register the fund with the ATO and obtain an ABN and TFN.
  4. Open a dedicated SMSF bank account.
  5. Roll over any existing super balances if applicable.
  6. Prepare your investment strategy.

At autoSMSF, we assist with the complete setup process, including fund registration and documentation. The process can take anywhere from a few days to a few weeks depending on how quickly information is provided — you can read more in our SMSF setup timeframe guide.

Costs to Consider

An SMSF comes with both setup and ongoing costs — such as accounting, audit, and administration fees. It’s worth understanding these before deciding if an SMSF is right for you.
Check our SMSF setup and ongoing cost by visiting our Buy Services page.

Investment Strategy and Restrictions

Every SMSF must have a written investment strategy that reflects its members’ objectives and risk tolerance. You’ll need to consider factors such as diversification, liquidity, and insurance.
There are also restrictions on certain investments — for example, loans to members or related parties, and purchasing assets from members are generally not allowed. See the ATO’s investment strategey guidlnes for full details.

If you plan to invest in property through your SMSF, ensure you understand borrowing and structure requirements before proceeding.

Ongoing Reporting and Compliance

Once your fund is set up, your responsibilities don’t end there. Each year, the fund must:

  • Prepare financial statements
  • Complete an independent audit
  • Lodge an annual SMSF tax return
  • Pay the ATO supervisory levy

Trustees also need to ensure that contributions, rollovers, and pension payments meet superannuation law requirements. The ATO’s annual obligations guide provides more information about ongoing compliance.

Is an SMSF Right for You?

Managing your own super offers flexibility and control, but it also requires time, attention, and a sound understanding of the rules. Before proceeding, it’s important to consider whether an SMSF suits your financial goals and circumstances.
You may wish to speak with a licensed financial adviser before making a decision.

At autoSMSF, we’re SMSF specialist accountants focused on the accounting, tax, and compliance side of SMSF management. If you decide to move forward, we’ll handle the setup and annual requirements so you can focus on your investment strategy with confidence.

Speak with an SMSF Specialist

If you have decided to setup your SMSF, our team can guide you through the process from setup to ongoing compliance.
Get in touch today to discuss your fund’s setup and what’s required to get started.