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5 SMSF Must-Knows

  • Writer: Stacy
    Stacy
  • Sep 30, 2025
  • 3 min read

Your Foundation Guide to Self-Managed Super Funds


Introduction


If you’re reading this, you’ve probably heard about SMSFs and are wondering if they might be right for you. This guide will give you the essential knowledge you need to make an informed decision. At Vivacè Advisory, we’ve spent more than 20 years helping people in our region set up and run successful SMSFs. Here are the five things you need to know before you take the next step.


1. What is an SMSF and How Does it Work?


A self-managed super fund (SMSF) is a private superannuation fund that you run yourself. Unlike retail or industry super funds, where your money is pooled with thousands of others, an SMSF gives you direct control over your retirement savings.


  • An SMSF can have up to six members.

  • All members must also be trustees (or directors of a corporate trustee).

  • As trustees, members make decisions about how the fund is run and where it invests.


Think of it as being the manager of your own retirement fund: you choose the investments, but you’re also responsible for following the rules.


2. The Main Benefits of Having an SMSF


SMSFs are popular because they give you:


  • Control over investments – choose direct property, shares, term deposits, managed funds, precious metals, crypto and more.

  • Flexibility in retirement planning – tailor pension payments and transition strategies to suit your lifestyle.

  • Tax planning opportunities – manage contributions and income streams to maximise after-tax returns.

  • Estate planning options – use binding nominations or reversionary pensions to protect your family’s future.


For example: many small business owners use their SMSF to buy their business premises, turning rent into retirement savings.

3. The Responsibilities and Rules You Must Follow


Running an SMSF comes with serious responsibilities. The Australian Taxation Office (ATO) regulates SMSFs and expects trustees to:


  • Prepare annual financial accounts and lodge a tax return each year.

  • Arrange an independent audit every year.

  • Keep the funds’ money separate from personal assets.

  • Follow strict investment rules, such as restrictions on buying assets from related parties and always operating at arm’s length.

  • Maintain the fund for the sole purpose of saving and providing for your retirement.


Important: Mistakes can be costly, which is why most trustees rely on professional help. The good news is that with the right support, compliance can be straightforward.

4. Costs and When an SMSF Makes Financial Sense


Running an SMSF has both setup and ongoing costs, so it’s important to compare them with what you’d pay in a traditional super fund.


Industry Fund Example – HESTA Balanced Growth


On a combined balance, fees include admin, investment, and transaction charges. These are

percentage-driven, so they grow with your balance.


SMSF with Vivacè Advisory


Fixed annual costs of around $3,000 – $5,000, covering accounting, audit, and compliance. Costs don’t increase as your balance grows. SMSFs also have a fee to the ATO that they must pay & ASICfor the company trustee of your SMSF (additionally your Bare Trust Trustee company, if you’re borrowing to buy property).


Cost Comparison – Industry Fund vs SMSF

Balance

Industry Fund (HESTA est.)

SMSF (Avg Vivacè Advisory

Admin w Audit)

$400,000

~$3,160 p.a.

~$3,000–$5,000 p.a.

$800,000

~$6,320 p.a.

~$3,000–$5,000 p.a.

$1,200,000

~$9,480 p.a.

~$3,000–$5,000 p.a.

$1,600,000

~$12,640 p.a.

~$3,000–$5,000 p.a.

Key Insight:


  • Note: HESTA is considered a fairly competitive industry fund, with fees on the lower end of the market. Some retail or boutique super funds can charge up to 1.5% p.a., which would make their fees far higher than SMSFs at larger balances.

  • The above fees only cover running costs, if you manage the Investment strategy yourself.

  • Cost is only one aspect of SMSFs. The other significant benefits include:

    • Control over investment decisions

    • Flexibility in how the fund is managed and structured

    • Ability to access an adviser for personalised, bespoke investment portfolios

    • Options for tailored family life insurance strategies within the SMSF


5. Getting Started – The Professional Help You'll Need


Running an SMSF is a team effort. You may need:


  • Accountants and advisers – to guide you on compliance and strategy.

  • Auditors – to meet the legal requirement of an independent annual audit.

  • Lawyers – for trust deed setup and estate planning.


At Vivacè Advisory, we’ve been doing this for 20 years, we can work with your current team or assist in bring these services together for you. That means your SMSF is structured, managed, and supported in a way that’s efficient, compliant, and focused on your goals.


Next Steps


An SMSF isn’t for everyone. But if you value control, flexibility, and have the right balance, it can be a powerful retirement strategy.


If you’d like to learn more:



We’d love to help you explore whether an SMSF is the right path for your retirement journey.


If now is the right time, or if it’s something to consider in the future.

 
 
 

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