Undoubtedly, self-managed superannuation funds (SMSFs) have become very popular in Australia. People choose to invest in a self-managed super fund for many reasons. It includes the freedom to plan their investment strategy and the expanded range of assets you can purchase. 

This lets you cover expenses such as real estate and collectibles, and the ability to use some retirement savings to buy a business or a building. Regardless of the specifics, it is clear that SMSFs continue to be an invaluable form of retirement savings.


Added flexibility is not the only advantage of SMSFs over the traditional model of investing.  Here are some other benefits:

  • There are no restrictions on how your fund is directed, which means you have complete control.
  • You have access to a more excellent range of investments, including your business.
  • You can leave your superannuation in your fund, which means you control the timing of your retirement and its size.
  • You don't need a minimum balance.
  • The investment earnings are not taxed until you withdraw them, which means you can build up a significant nest egg that you may use to supplement your retirement income.


Although self-managed superannuation funds are an excellent option for some, the lack of regulation in the market can prove problematic for others.

A self-managed superannuation fund means that you'll be responsible for your retirement savings – including your financial security. 

You'll be responsible for all the administrative tasks, including investment decisions, bookkeeping, and tax planning. It's also worth noting that the benefits of a self-managed superannuation fund are only available to those who commit to doing it themselves.

You'll need to have expert knowledge in accounting and investment theory. If you don't have these skills, you’ll unlikely enjoy the same benefits as someone who manages their fund.

Special Considerations

In addition to the main benefits and drawbacks, it's essential to consider the following elements when you're considering a self-managed super fund:

  • There are no tax benefits with self-managed super funds, so you'll need to pay more attention to your dues to avoid paying the highest taxes.
  • The Australian Tax Office (ATO) has the authority to impose penalties on those who don't follow the law, which means you'll be responsible for any tax-related penalties.
  • You'll need to make sure you can afford to take on managing your retirement fund. 
  • In other words, you'll need to make sure you have the skills, experience, and financial means to handle day-to-day investments.
  • Even if you have these things, think carefully about whether you want to do something as complicated as managing your retirement fund.
  • No doubt, paying yourself minimum wage is much better than paying the highest tax rates, but there is also no denying that the government fees are lower, which means you'll have access to more money.
  • While it's true that you'll have more investment options with a self-managed super fund, you'll also need to pay additional fees to cover the costs of administration and bookkeeping.
  • These fees can quickly add up, which means you should evaluate whether they are offset by the potential benefits of a self-managed fund.


You should not carelessly decide to switch from a traditional superannuation fund to a self-managed one. This is especially true because its potential returns are only available to those with the skills and time to manage their retirement fund. In fact, it means most people would be better off utilising the traditional model. This is why you’ll need to evaluate all the factors, including the potential benefits and drawbacks.

Wealthy You can give you the help you need with your superannuation management problems. If you need help managing your self-managed superfund (SMSF), our Sydney based mortgage brokers can give you the best service and advice to help you accomplish your goals! Contact us today!