How SMSFs can help you take control of your super (and what to watch out for)

If you’ve ever thought, “I wish I had more control over where my super goes,” you’re not alone. Self-Managed Superannuation Funds (SMSFs) have become a popular way for Australians to take direct control of their retirement savings—but they’re not right for everyone.

In this article, we’ll explain what SMSFs are, their benefits, risks, and how to decide whether managing your own super is worth it.

What is a self-managed super fund (SMSF)?

An SMSF is a private super fund that you manage yourself. You can have up to four members (or six if set up after 2021), typically yourself and close family members.

Unlike traditional super funds, where your money is pooled with thousands of other members and managed by professionals, an SMSF gives you full control over how your retirement savings are invested.

But with that control comes responsibility.

Why choose an SMSF?

There are many reasons people choose to manage their own super:

Investment flexibility

With an SMSF, you can invest in a much broader range of assets, including:

  • Direct shares

  • Residential or commercial property

  • Term deposits and bonds

  • Managed funds and ETFs

  • Even some collectibles (if compliant)

Many people use SMSFs to purchase a commercial property and lease it back to their business—a strategy not available in retail super.

Control and transparency

You choose where your money goes, how it's managed, and when to make changes. You can tailor your investment strategy to suit your personal values, risk appetite, and goals.

Potential cost savings

With a larger balance (generally $300k+), SMSFs can be cost-effective compared to fees in retail or industry super. This is especially true if multiple members are in the fund.

Tax strategies

SMSFs offer flexibility around tax planning, pension setup, and estate planning. You can move between accumulation and pension phases, manage capital gains more strategically, and use franking credits effectively.

What are the risks of an SMSF?

Despite the benefits, SMSFs come with serious obligations. You are personally responsible for complying with superannuation and tax laws, and penalties for breaches can be severe.

Here’s what to consider:

Time commitment

Running an SMSF isn’t set-and-forget. You’ll need to manage:

  • Investments

  • Record-keeping

  • Contributions and pensions

  • Regulatory compliance

  • Annual audits

Regulatory complexity

Superannuation law changes frequently. There are strict rules around contributions, borrowing, asset separation, and related party transactions. A small mistake could trigger big penalties.

Costs for small balances

If your fund balance is too small, the fixed costs (like audit, administration, and financial advice) can eat into your returns.

Investment risk

You don’t have a team of fund managers watching the markets for you. Poor decisions—or lack of diversification—can result in underperformance.

Is an SMSF right for you?

An SMSF may suit you if:

  • You have at least $300,000–$500,000 in super (or will soon)

  • You want greater control over investments and tax strategies

  • You’re comfortable making financial decisions or will seek expert advice

  • You’re committed to keeping records and meeting compliance obligations

  • You want to invest in specific assets like property

It may not be suitable if you prefer a hands-off approach, have a low balance, or aren’t confident managing complex financial responsibilities.

How McMillans can help

At McMillans, we offer end-to-end SMSF services, including:

  • SMSF establishment and trustee education

  • Investment strategy development

  • Ongoing administration, compliance, and audit

  • Pension setup and transition

  • Annual reporting and tax lodgement

  • Real-time dashboards and event-based reporting

  • Coordination with financial planners and solicitors

We take the hassle out of managing your own fund while leaving you in control of the decisions that matter.