This blog reflects a professional opinion based on years of working with self-managed super fund (SMSF) clients and seeing first-hand what works and what doesn’t. If you’re considering an SMSF setup, or you’ve already done it, there’s one thing that can’t be ignored: you are supposed to manage your own super.
That’s the whole reason people set up an SMSF to take control into their own hands. Yet many SMSF trustees fall into the trap of handing that control over to someone else. That’s not how an SMSF is meant to work, and when you outsource too much, you open yourself to risk and lose the very benefits you were aiming for.
SMSF Setup Means You’re Taking Control
When you go through the process of SMSF setup, you’re accepting the role of trustee. That means you’re responsible for how your superannuation is invested, how your fund complies with regulations, and how it performs over time.
There’s nothing wrong with taking advice; SMSF accountants, financial advisers, and lawyers are there to help you do things properly. But if you’re not involved in making the key decisions, your SMSF starts looking a lot like a retail or industry fund, just with more administration and more legal responsibility.
In the past, we’ve seen how bad things can get when trustees hand over control. One example is the First Guardian Masterfund, where some SMSF trustees allowed others to manage their fund with little oversight. When things unravelled, it was still the trustees who were left to deal with the consequences. SMSFs are not designed to be managed by someone else; they are structured for those who want to be directly involved.
What Being an SMSF Trustee Actually Means
If you’ve completed your SMSF setup, you’ve signed on to:
- Decide how and where to invest your super
- Monitor performance and risks
- Make sure your fund remains compliant with ATO regulations
- Take full legal responsibility as trustee
You’re not expected to do it all yourself. But you are expected to understand what’s going on, approve decisions, and actively manage your fund. The moment you hand over that responsibility without oversight, you’re putting yourself and your retirement savings at risk.
When an SMSF Is the Right Choice
I firmly believe an SMSF can be an excellent structure for the right person. It’s ideal if:
- You want to be involved in your investment decisions
- You value flexibility and direct control over your super
- You’re willing to take responsibility and stay informed as a trustee
- You want to Setup SMSF for property and explore investments that aren’t available through retail or industry super funds
- You’re interested in SMSF real estate, buying property with SMSF, or investing in assets like precious metals, private companies, or international shares
- You want to take advantage of SMSF borrowing rules to invest strategically, such as through a limited recourse borrowing arrangement (LRBA)
- You’re happy to work with professionals (like SMSF accountants and advisers) while remaining in control
If you’re looking for more flexibility in retirement planning, especially around tax planning and estate control, an SMSF can give you more tools than traditional super options—if you’re willing to manage it.
What Real Management Looks Like
Being in control of your SMSF means:
- You understand what your fund is investing in and why
- You regularly review your SMSF’s bank account, trading accounts, and financial reports
- You approve your investment strategy, not just sign documents you don’t understand
- You keep your eye on compliance and take the trustee role seriously
This applies whether you’re investing in ASX shares, managing an LRBA, or planning to buy property through your SMSF. Oversight is key.
When an SMSF Might Not Be Right
An SMSF isn’t for everyone. You may want to reconsider if:
- You don’t have time or interest in being involved
- You’re relying on someone else to make every decision
- You don’t understand what your fund is invested in
- You never review your fund’s financials
- You’re not comfortable with trustee responsibilities
If that sounds like you, a low-maintenance retail or industry fund may be a better fit. There’s nothing wrong with that, but don’t assume an SMSF is a “better” option just because it’s more flexible. The flexibility is only a benefit if you’re willing to use it properly.
SMSF Setup Is Just the Beginning
Too many people think of SMSF setup as a one-off step. In reality, it’s the starting point. Once your fund is established, you’ll be required to:
- Maintain proper records and compliance
- Prepare and lodge your SMSF tax return annually
- Understand how your investments align with your strategy
- Navigate complex areas like SMSF borrowing rules if you’re planning to invest in property or other leveraged assets
This is where a good SMSF accountant can help. But again, the help you receive is support—not a substitute for your own involvement.
Final Thoughts
If you’re going to set up an SMSF, then manage it. That’s the whole point. Use professionals wisely, take advice when needed, but stay involved and in control. If you’re not ready to take responsibility, you may not be ready for an SMSF.
But for those who want more control, access to a wider range of investments like SMSF real estate or precious metals, and the ability to tailor their super strategy, an SMSF is the most powerful structure available. Just make sure you’re using it the way it was intended.
Need help managing your SMSF without giving up control?
At autoSMSF, we make the compliance and tax side of SMSFs simple. Whether you’re looking to setup SMSF for property, navigate SMSF borrowing rules, or just want to ensure your fund stays on track, we support SMSF trustees who want real control with real support.
