Interest in self-managed super funds (SMSFs) is growing as more Australians look to gain greater control over their retirement savings. With over 650,000 SMSFs now managing more than $1 trillion in assets, the growing presence of self-directed superannuation in Australia is becoming more notable. If you’re considering going down this path, understanding the SMSF setup process is an essential first step.
Setting up an SMSF is a significant decision that comes with legal, financial and compliance responsibilities. If you're considering establishing an SMSF in Australia, this article outlines the key steps involved, including choosing a fund structure, creating a trust deed, registering with the ATO and opening a bank account. It also covers important considerations such as setup costs, ongoing obligations, and how investing through an SMSF may work once the fund is established.
The information below provides a general overview only, and you should seek professional financial, tax or legal advice before making decisions relating to an SMSF.
Key takeaways
The SMSF setup process in Australia involves choosing a trustee structure, creating a trust deed, appointing trustees, registering with the ATO and opening a dedicated bank account.
Costs of setting up SMSFs may include establishment fees, legal documentation, accounting or administration support, audit fees and the ATO supervisory levy. These costs are generally managed externally through accountants, SMSF administrators or other service providers.
Ongoing responsibilities include annual tax returns, independent audits, record-keeping and compliance with ATO regulations.
Once established, SMSF trustees can start investing through platforms like CMC Invest, which lets you explore 40,000+ instruments across the ASX and global markets.
Consider seeking professional legal, tax and financial advice before establishing an SMSF.
What you need before setting up an SMSF
Before starting on the SMSF setup process, there are several things to bear in mind:
Members: An SMSF can have up to six members. All members must be trustees (or directors of a corporate trustee).
Trustee structure: You’ll need to decide between individual trustees and a corporate trustee, which is a decision that can impact costs and administrative needs.
Time and commitment: Running an SMSF comes with big demands for investment management, administration, compliance and more.
Costs: There are upfront establishment costs as well as ongoing fees for accounting, auditing and administration work.
SMSFs are regulated by the ATO and superannuation laws, so make sure you’re across all your obligations before you begin. Understanding your obligations is important to helping your fund remain compliant.
Overview: How to set up an SMSF in Australia
Setting up an SMSF involves several external steps before trustees can start investing through a platform such as CMC Invest. The exact process may vary depending on the fund’s circumstances and the professional service providers involved.
1. Confirming your SMSF trustee structure
One of the first decisions in the SMSF setup process is the trustee structure. SMSFs can generally have either individual trustees or a corporate trustee. The structure chosen may affect administration, costs, succession planning and how changes in membership are managed over time.
Trustees should consider seeking professional advice before deciding which structure is suitable for their circumstances.
2. Creating an SMSF trust deed
The SMSF trust deed is a legal document that sets out how the SMSF operates. It generally covers matters such as trustee powers, member arrangements, benefit payments and the types of investments the fund may be able to make. If, for example, you plan to invest in cryptocurrency, the deed must explicitly allow it.
The ATO provides detailed guidance on their website on what to include in an SMSF trust deed.
3. Confirming trustees, members and declarations
After the trustee structure has been decided, eligible trustee/s need to be appointed in accordance with the trust deed. All SMSF members are generally required to be trustees of the fund, or directors of the corporate trustee. Trustees are responsible for managing the SMSF and ensuring it complies with relevant laws.
Trustees and directors of a corporate trustee are generally required to complete the ATO trustee declaration. This compliance document should be retained as part of the fund’s records.
4. Register the SMSF with the ATO
Once the SMSF has been legally established, it generally needs to be registered with the ATO. This may include applying for an Australian Business Number (ABN), Tax File Number (TFN) and electing for the fund to be regulated by the ATO.
Before CMC Invest can approve an SMSF investment account, the fund’s registration details need to be verified. Trustees should ensure the SMSF’s details are correctly recorded with the ATO, and the fund’s status is listed as ‘Complying’ on the ATO’s Super Fund Lookup before applying.
5. Setting up a dedicated SMSF bank account
An SMSF generally needs a dedicated bank account in the name of the fund. This account is used to receive contributions, rollovers and investment income, and to pay fund expenses.
The bank account should be separate from trustees’ personal finances and should be established before the investment account is funded.
6. Getting an electronic service address
To receive employer contributions and rollovers, your SMSF will generally need an electronic service address (ESA).
An ESA allows your SMSF to receive contribution and rollover information electronically through SuperStream. It is different from an email address and is usually provided by an SMSF administrator, accountant, tax agent or specialist ESA provider.
7. Creating your SMSF investment strategy
Your SMSF must have an investment strategy that sets out how the fund will invest to meet members’ retirement objectives.
The strategy should consider factors such as risk, return, diversification, liquidity, cash flow needs and
whether insurance should be held for members.
Trustees should document the strategy and review it regularly, especially when member circumstances or investment objectives change.
8. Preparing an SMSF exit plan
Trustees should also have a plan for how the SMSF may be wound up or transferred in the future.
An exit plan can help manage events such as retirement, death, incapacity, members leaving the fund or trustees no longer wanting to manage the SMSF.
The plan should consider how assets may be sold or transferred, how benefits will be paid or rolled over, and what final reporting, audit and tax obligations may apply.
How to start investing with your SMSF
After the SMSF has been established, is compliant and has the required documentation in place, trustees can apply for an SMSF account with CMC Invest.
As part of the application process, trustees may need to provide information such as the SMSF name, ABN, TFN, trustee or director details, certified trust deed, bank account details and other identity or verification information.
CMC Invest gives SMSF trustees access to a wide range of investment options, including:
40,000+ stocks and ETFs across the ASX and 15 international markets.
ASX shares and ETFs with $0 brokerage for orders under $1,000*
$0 brokerage on international shares**
Competitive interest rates of up to 4.75% p.a. for new CMC Invest SMSFs accounts.***
Integration with top SMSF accounting software, including BGL and Class Super.
Want to learn more? Start exploring SMSF investing with CMC Invest.
*First buy under $1,000 per security, per day. Excludes margin loan settled trades.
**US, UK, Japanese and Canadian stocks and ETFs only. FX rates apply.
*** Only applicable to SMSF clients who opened a trading account with CMC Invest on or after 22 May 2026. Interest is calculated on the cash balance of the cash account opened by CMC Invest on behalf of the client, and does not include the proceeds of any unsettled sale transactions which the client is entitled to. Interest rates displayed are correct as of 15 July 2026 and are subject to change.
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