Should You Take Control of Your Super with an SMSF?

A Self Managed Super Fund (SMSF) can offer incredible control and investment flexibility, but it’s not the right fit for everyone. If you’re wondering whether you should consider an SMSF, here’s what you really need to know before diving in. 

Why people consider an SMSF 

For many, an SMSF means control. You decide where your money is invested. Whether that’s shares, property, term deposits, or even cryptocurrency (though we’d strongly suggest caution!). It can be tailored to your long-term financial goals and even allows for greater estate planning flexibility. But with control comes responsibility.  Some questions to ask yourself: 

• Do you think your investments will return more than those of other superfunds? 

• Are you happy to work closely with an advisor to ensure all documents and compliance are accurate and up to date? 

• Do you have time to manage the fund and its investments? 

• Do you have insurances in your current fund that you wish to retain? 

• Are you looking for a more personalised investment strategy, or happy with your fund’s default options? 

How involved do you need to be? 

You don’t need to be a share market expert to run an SMSF, but you do need to be engaged. SMSF trustees are legally responsible for the fund’s decisions and compliance, even if you have help from an accountant. That’s why we always encourage clients to talk to us before making large decisions, to ensure they are within the rules.  

A SMSF’s reporting obligations are: 

• Engaging an accountant to prepare financial statements each year 

• Engaging an auditor to audit the fund each year (generally the accountant arranges this) 

• Lodging a tax return for the SMSF and paying the tax to the ATO 

• Maintaining your ASIC records for the corporate trustee. 

• Keeping all receipts and documents (electronic is allowable) 

• If anyone tells you that you can set up an SMSF and access the money for personal use – walk away. That’s a clear breach of the rules, and it’s likely a scam.  

Can you utilise an SMSF to build wealth? 

With a smart strategy, SMSFs can create long-term wealth. But success depends on: 

• Having a clear investment strategy 

• Making regular contributions 

• Avoid concentrating your investments in just one asset class 

• Staying compliant and reviewing performance regularly 

Top SMSF Tip 

• SMSF pay tax at 15% 

• CGT in SMSF is 10% (if owned property for over 1 year) 

• Tax can be a 0% when over age 60 and reached a condition of release 

And yes – once you turn 60 and meet a condition of release (like retiring), you may be able to access your super tax-free 

Buying Property in Super – What You Really Need to Know 

This is one of the biggest reasons people contact us to discuss SMSFs. Let’s be clear – it is not for everyone. However those it works for, it works well. We love seeing business owners secure their own commercial premises in their SMSF. 

To purchase a property in a SMSF the minimum cash you will need is: 

• 20–30% deposit  

• Stamp duty costs 

• Approx. $20,000+ in setup and advice costs, including loan structures, solicitor fees, and compliance 

Time is also essential, it takes at least 2–3 months to set up the structure and get loan pre-approval before you can even make an offer. Consider your age and timeline. Property is a long-term play, so if retirement isn’t far away, the strategy may not have enough time to deliver results. 

Key do’s and don’ts when it comes to SMSF property 

• You can buy a property with cash (no lending) 

• You can renovate/rebuild a property with cash (this is limited if there is a loan over the property) 

• You can borrow to buy commercial or residential property (LVR 70/80%) 

• You/your business can rent a commercial property off the SMSF (at market value) 

• You (nor any related party) CANNOT rent a residential property from your SMSF 

• You, nor any related party CANNOT occupy a residential property owned by your SMSF at any time 

• You CANNOT use the equity in one property to purchase a second 

• You CANNOT refinance a SMSF property to access equity (cash) 

Common SMSF risks: 

• Compliance breaches: These can result in heavy fines or your fund becoming non-compliant 

• Lack of diversification: A fund with a single asset is high risk 

• Poor record keeping: The ATO expects accurate, timely reporting 

• No clear investment plan: Every SMSF needs an Investment Strategy (by law) 

Work with an advisor that specializes in SMSF to ensure that you stay on the right track. 

So, is an SMSF right for you? 

Here are five quick checks: 

1. Do you have approximately $200,000 in super to start? (this figure is variable for every person, and it is a good idea to seek professional guidance) 

1. Are you comfortable being a trustee and understand your responsibilities? 

1. Do you want to explore investments not available in retail or industry funds? 

1. Do you have time to manage it properly? 

1. Are you clear on your retirement goals?  

If you’re nodding along – great. And if you’re unsure, that’s totally okay too.
The next best step is to chat with someone who knows SMSFs inside and out.
At Lift Accounting, we specialise in SMSF setup and ongoing support – helping clients make confident decisions about their future. Give us a call to discuss your position.