The Ultimate Self-managed Super Funds FAQ: Every Question You've Ever Had About SMSF

To set up an SMSF, you need to:

• Decide on the type of trustee structure (individual or corporate).
• Create a trust deed (legal document setting rules for the fund).
• Appoint trustees and sign declarations.
• Apply for an ABN and TFN for the SMSF.
• Open a dedicated SMSF bank account.
• Roll over existing super into the SMSF.
• Develop an investment strategy.

Tip: It’s strongly recommended to use an accountant or SMSF specialist to ensure compliance from day one.

ASIC suggests that SMSFs may only be cost-effective with $200,000+ in combined super balances. While there’s no legal minimum, smaller balances may see fees outweigh returns.

Yes, you can legally start with $100,000, but costs (set-up + annual admin) may reduce the benefits unless you expect strong investment performance or plan to add significant contributions soon.

There is no legislated minimum, but the ATO and ASIC recommend at least $200,000 for cost-effectiveness.

Usually 2–4 weeks if all documents are prepared quickly, but delays can occur with bank account setup and super rollovers.

The SMSF pays for its own setup costs using member contributions or rolled-over funds once the SMSF is established.

Expect $1,500–$3,000 for professional setup (including trust deed, registrations, and bank account). Complex structures may cost more.

You can DIY with online templates and directly lodge with the ATO, but risks of non-compliance are high. Professional help is strongly advised.

No, but financial advice ensures your decision is suitable for your circumstances and meets your retirement goals.

Yes, in practice. An accountant handles annual returns, audits, and compliance obligations.

Not legally required, but many trustees use one to help with strategy, investments, and meeting regulations.

Worth considering if you have $200,000+ in super, want investment control, and are prepared for the time, cost, and compliance responsibility.

In accumulation phase, income is taxed at 15%; capital gains at 10% if held for more than 12 months. In pension phase, income may be tax-free.

Yes, but the SMSF pays tax at concessional rates. Personal withdrawals may be tax-free after preservation age, depending on circumstances.

Typically $1,500–$3,000 per year for administration, tax returns, and arranging audits.

Ongoing advice can range from $2,000–$5,000+ annually, depending on complexity.

Between $2,000–$5,000, covering admin, audit, accounting, and any investment or adviser fees.

Generally at $200,000–$250,000+ combined balance, or if you need specific investment control (like business property).

For residential property: typically $200,000–$250,000 to cover deposit and costs. For commercial property: requirements vary, but loan-to-value ratios are often 60–70%.

No. It’s illegal for SMSF members or related parties to live in or rent residential property owned by the SMSF.

No, unless it’s a commercial property leased at market rates to your own business.

No — same as above, this breaches the sole purpose test and in-house asset rules.

Yes, but only if it’s not used by members, relatives, or related parties. It must be arm’s length and commercially operated.

• Illiquidity (hard to sell quickly)
• Large capital required
• Ongoing compliance
• Lending restrictions
• Risk concentration if property is most of your SMSF

Your SMSF cannot have more than 5% of total assets in in-house assets (investments in related parties/entities).

If your in-house asset limit exceeds 5%, you have 6 months to bring it back into compliance.

Relates to franking credit entitlement — shares must be held for at least 45 days to claim credits.

Proposed tax changes (from 2025) would apply an extra 15% tax to earnings on balances over $3 million.

Returns vary widely; ATO data suggests around 6–8% p.a. on average over the long term.

Generally no, unless you’re qualified and providing services to the fund in a professional capacity, charging at market rates.

A common benchmark is around $150k–$200k, but this depends on retirement goals and contributions.

Approx. $800k–$1 million in today’s dollars, assuming moderate investment returns.

Once in pension phase, minimum drawdowns apply (e.g., 4% at age 60–64). No maximum, but withdrawals must comply with preservation rules.

Yes, if you’ve reached preservation age and met a condition of release (e.g., retirement).

Yes, but only once you meet a condition of release. Early withdrawals are illegal unless under specific hardship provisions.

Depends on needs — some banks specialise in SMSF loans (e.g., Liberty, La Trobe, Bank of Queensland), while others are better for cash accounts. Compare rates, fees, and features.

As above — “best” depends on whether you’re after transactional accounts, term deposits, or lending.

SMSF loans usually have higher rates than standard home loans — often 1–2% higher, currently in the 6–8% p.a. range (variable).