Self-managed super funds (SMSFs) are still growing both in number and in assets. According to the latest figures from the Tax Office, the total assets held by SMSFs now exceeds $750 billion shared by 1,118,650 members. Yet, despite the popularity, the average trustee of an SMSF has only a vague understanding of the ... Read more
SMSFs for beginners
In this section you can learn the fundamentals about self-managed superannuation funds (SMSFs). The following articles are our key features explaining the basics about SMSFs:
See also SuperGuide's main SMSFs section.
Set out below are all SuperGuide articles that relate to SMSFs for beginners.
What is a self-managed super fund (SMSF)?
As the name implies, an SMSF (also known as DIY super) is a private super fund that you manage yourself. So it’s no surprise that control is the number one reason people give when asked why they chose to fly solo. SMSFs give their members control over how their retirement savings are invested. Other reasons for ... Read more
SMSF statistics: 1.1 million members with $747bn in super
Self-managed super funds (SMSFs) in Australia are privately run super funds that can currently have between one and four members (who must also be trustees of their fund). The government has proposed to allow SMSFs to have up to six members from 1 July 2019, but this is not yet legislated. According to the ATO, the ... Read more
Guide to SMSF audits
Self-managed super fund (SMSF) audits are mandatory in Australia and must be conducted by an auditor who is registered with the Australian Securities and Investments Commission (ASIC). This auditor must be independent (i.e. not have any financial interest in the SMSF, nor have any personal or business relationships ... Read more
Quiz: SMSFs for beginners
Take the following 10 question quiz to test your knowledge on the fundamentals of self-managed super funds (SMSFs). Don't worry if you don’t know the answer to a question. Have a go anyway and we’ll let you know the correct answer, as well as providing you with a link to a relevant article. Note: When you pick an ... Read more
Fund Performance: SMSFs vs APRA super funds
The debate about who wins the battle between SMSFs and APRA-regulated super funds is one that has emerged in recent years with the rapid increase in new SMSFs which is growing at around 14% per year. So which of these two retirement income investment vehicles delivers the better investment returns, and why can one ... Read more
Real DIY super: Ways that SMSFs can be ultra low-cost
Self-managed superannuation funds are often referred to as do it yourself funds or DIY Super. But how DIY can they really get? It it even possible to do everything yourself and if you were, how significant would the savings be? If you are seeking to start up and run an SMSF for the lowest cost possible you will have ... Read more
Which asset classes are popular with SMSFs?
Of the many benefits of running your own SMSF, one of the major drawcards is the wider choice of investment strategies that can be established compared to a traditional super fund. Along with the safety of cash and term deposits, SMSFs can also directly invest in Australian and international shares, property trusts, ... Read more
What type of people have SMSFs?
According to the latest Australian Taxation Office (ATO) statistics, more than 1.1 million Australians are members of self-managed super funds (SMSFs). The number has been steadily increasing for several years. SMSFs are privately run super funds that can currently have between one and four members. The government has ... Read more
SMSF investment rules: What every trustee should know
An SMSF is a very attractive superannuation savings vehicle but it also comes with plenty of responsibility for anyone that signs up to being a trustee. While most of the time people choose an SMSF because of the freedom of investment choice it provides, it’s important to understand the rules around what you can, and ... Read more
How super works: A beginners guide to superannuation
Simply put, superannuation (or super) is money you put in a super fund while you are working to provide income later in life when you retire. Given the average Australian can expect around 20 years of retirement, and the Age Pension is designed to provide only the most basic needs, the more you can save now the more ... Read more
How to create an SMSF investment strategy (including examples)
Self-managed superannuation funds are required, under the Superannuation Industry (Supervision) Act 1993, “to formulate, review regularly and give effect to an investment strategy.” What is an SMSF investment strategy? That investment strategy needs to take into account the following things: The risk involved in ... Read more
What to consider when looking for an SMSF provider
There are plenty of SMSF service providers available, ranging from those who offer traditional face-to-face services through to purely online providers. The type of provider you should choose depends on factors such as: Your level of knowledge about SMSFs and investments. The extent to which you want (or ... Read more
Is it possible to have two SMSFs at the same time?
Australian super legislation allows you to establish and run more than one SMSF, but it’s important to understand the potential for downsides as well as benefits. More people are considering setting up a second SMSF since the following key changes were introduced to super legislation from 1 July 2017: SMSFs no ... Read more
How to evaluate whether an SMSF is right for you
It may seem like everybody is jumping on the Self Managed Super Fund (SMSF) bandwagon as a new investment vehicle, but the reality is that just under 5% of the Australian population has one. According to the Australian Tax Office, at September 2018 there were just under 600,000 SMSFs with a total of 1.125 million ... Read more