Self-Managed Super Funds

Is a SMSF Appropriate for You?

ASIC has warned Australian investors considering establishing their own SMSF to be particularly aware of the potential downside to such a strategy, and that many Australians set up SMSFs that are inappropriate for their circumstances. 

ASIC has identified eight "red flag" situations which, together or in part, would make it extremely unlikely for an investor to gain any advantage from using SMSFs to create and safeguard their intended retirement lifestyle. The red flag indicators identified in REP 575 SMSFs: Improving the quality of advice and member experiences are:

  • The investor has a low superannuation balance, and would have a limited ability to make further contributions
  • The investor wants a simple superannuation solution
  • The investor wants to delegate all of the running of the SMSF to a paid advice-provider
  • The investor wants to delegate all of the investment decision making to someone else
  • The investor does not have a lot of time to devote to managing their financial affairs
  • The investor has little experience making investment decisions
  • The investor, or suggested trustee, is an undischarged bankrupt or has been convicted of an offence involving dishonesty (because undischarged bankrupts and persons convicted of an offence involving dishonesty are prohibited from acting as a trustee), and
  • The investor has a low level of financial literacy

ASIC has released a fact sheet, Self-managed superannuation funds: Are they for you?, for consumers and SMSF trustees deciding or reassessing if an SMSF is appropriate for them. It is also a useful resource for financial advisers when providing personal advice on SMSFs.


Source: ASIC media release, 11 October 2019.

Thinking about self-managed super?

If you set up a self-managed super fund (SMSF), you're in charge- you make the investment decisions for the fund and you're held responsible for complying with the super and tax laws. It's a major financial decision and you need to have the time and skills to do it. There may be better options for your super savings. 

An SMSF must be run for the sole purpose of providing retirement benefits for the members or their dependents. Don't set up an SMSF to try to get early access to your super, or to buy a holiday home or artworks to decorate your house. These things are illegal.

It's best to see a qualified, licensed professional to help you decide.

For more information click on the video link below.


Buying Property Through Your SMSF is a Poor Strategy

Noel Whittaker, columnist for The Sun-Herald, discusses one of the hottest topics right now: whether a self-managed superannuation fund should be allowed to borrow to buy property.

Click here to read more.


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