More Australians are taking control of their retirement savings through self-managed super funds (SMSF). As at March 2026, there are over 600,000 self-managed super funds in Australia collectively managing more than $1.05 trillion in assets, so it’s safe to say they have become a significant part of Australia’s superannuation landscape.
Let’s break down exactly what an SMSF is, how it works, the benefits and the risks, as well as some compliance essentials.
Key takeaways
An SMSF is a private super fund where members generally are also trustees, responsible for all investment decisions, plus compliance.
SMSFs are subject to various legislation including the Superannuation Industry (Supervision) Act 1993 (SIS Act); and rules set out by regulatory bodies such as the Australian Taxation Office (ATO).
There are a range of compliance obligations, meaning a big-time commitment and the responsibility of managing your own retirement savings.
CMC Invest provides access for SMSF trustees to invest in shares, ETFs, options, crypto and more through our all-in-one platform.
What is a self-managed super fund (SMSF)?
So, what is an SMSF exactly? A self-managed super fund is a private superannuation fund that you manage yourself, rather than paying a professional fund manager to do it for you. It’s a type of superannuation fund where the members are also the trustees. This gives you greater control over how your retirement savings are invested.
Want to choose specific assets and set up your own investment strategy? An SMSF may be worth considering, though it's important to weigh the benefits against the administration and compliance commitments involved.
How does an SMSF work in Australia?
It’s structured as a trust and governed by a trust deed that outlines the fund‘s rules and conditions for operating. Here’s a quick explainer of the key parts:
Trustees: Responsible for managing the fund, including making investment decisions and staying on top of compliance. In an SMSF, all members must be trustees (or directors of a corporate trustee).
Members: These are the individuals whose super is held in the fund. An SMSF can have up to six members.
SMSFs are regulated: Amongst other things, trustees must act in the best financial interests of every member, keep good records, lodge annual returns on time and arrange annual independent audits. Your fund must also comply with the Superannuation Industry (Supervision) Act and ATO rules.
Benefits of an SMSF
Greater control: You choose exactly where your super is invested, from individual shares to ETFs, property and more. Trustees can develop an investment strategy aligned with the fund’s objectives, circumstances and risk considerations.
What can you invest in: SMSFs can invest in a wide selection of assets including shares on the ASX, international shares, ETFs and cryptocurrencies.
Potential cost advantages: Depending on the fee structure and circumstances, SMSF can be cost-effective as the fund’s balance grows.
SMSF rules and compliance basics
At a high level, SMSF trustee’s responsibilities include:
Complying with the trust deed, ATO rules and the Superannuation Industry (Supervision) Act 1993.
Managing investments per the SMSF’s investment strategy.
Lodging an annual SMSF tax return.
Arranging an independent audit by an approved SMSF auditor each year.
Keeping accurate records of every transaction and decision, plus member balances.
Ensuring that the fund operates solely for the purpose of providing retirement benefits to its members.
What can you invest in with an SMSF?
Some assets that you may be able to invest in with an SMSF include:
Shares - ASX-listed and international shares.
ETFs and managed funds.
Residential and commercial property.
Cash, bonds and fixed income.
Many trustees consider diversification across multiple asset classes as part of their overall investment approach, balancing risk and return factors based on their individual circumstances and goals. Through platforms like CMC Invest, SMSF trustees can access investments such as Australian and international shares, ETFs and cryptocurrencies, depending on the investment strategy and trust deed.
Next steps: Setting up an SMSF
If you're interested in exploring the potential benefits of an SMSF further, you may also wish to learn more about the SMSF setup process, including considerations such as choosing a trustee structure, creating a trust deed and registering with the ATO. The ATO’s website provides useful information to get started.
If you’re ready to start investing through your SMSF, you can explore SMSF investing with CMC Invest today.
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