One of the biggest drawcards of an SMSF is the freedom to choose your own investments. You’re not stuck with whatever an industry fund offers — you get real control. But with that freedom comes rules. It’s not a free-for-all, and the ATO has very clear lines you can’t cross.
Here’s a straight, simple guide to what your SMSF can invest in, and what you need to watch out for.
You can invest in listed shares
ASX-listed shares are one of the most common SMSF investments.
You can buy:
- individual companies
- ETFs
- LICs
- managed portfolios
As long as the investment strategy supports it and it’s all recorded properly, shares are usually the easiest asset class for SMSFs.
You can hold cash and term deposits
SMSFs can invest in:
- cash accounts
- high-interest savings
- term deposits
These are low-risk options and give the fund liquidity, which the ATO expects as part of your investment strategy.
You can invest in managed funds
Your SMSF can buy units in:
- managed funds
- index funds
- wholesale funds
- certain investment platforms
Just make sure the fund allows SMSF investment and that the trust deed doesn’t restrict it.
You can invest in residential property (with rules)
SMSFs can buy residential property, but you can’t:
- live in it
- let family or related parties live in it
- use it for personal benefit
It must be purely for investment purposes.
You can also borrow through an LRBA (Limited Recourse Borrowing Arrangement), but the rules are strict and documentation must be spot on.
You can invest in commercial property
This is where SMSFs get interesting.
Your SMSF can own:
- offices
- warehouses
- retail units
- mixed-use property (commercial portion only)
And yes — your SMSF can lease business premises to your own business, as long as:
- the rent is market rate
- the lease is properly documented
- payments are made on time
- it follows the sole-purpose rule
This is a popular strategy for business owners.
You can invest in physical gold bullion and other metals
SMSFs can invest in:
- gold
- silver
- platinum and others
Storage rules apply — you can’t keep it in your cupboard at home. It must be stored securely and owned by the fund.
You can invest in crypto (with very strict rules)
Crypto is allowed, but messy if not handled correctly.
Your SMSF must:
- own the wallet
- prove ownership
- keep personal crypto completely separate
- maintain records of all transactions
No mixing, no shortcuts.
You can invest in alternative assets (but be careful)
SMSFs can invest in things like:
- artwork
- collectibles
- wine
- vintage cars
But these have some of the strictest rules:
- no personal use
- must be insured
- must be stored correctly
- must follow market valuation rules
Most trustees avoid these unless they’re confident with compliance.
If you like the idea of setting up an SMSF to control your retirement savings:
You must follow the sole-purpose test
Every investment must exist only to provide retirement benefits.
Anything that gives you or related parties a personal or financial benefit today is banned.
If the ATO thinks you’re using SMSF assets personally, you’re in trouble.
Your investment strategy must support your choices
The ATO requires your SMSF to have a documented investment strategy that covers:
- risk
- diversification
- liquidity
- retirement goals
- insurance considerations
Your investments must make sense in the context of that strategy. If you jump from conservative cash to high-risk crypto with no explanation, expect questions.
The bottom line
Your SMSF can invest in a wide range of assets — far more than a typical super fund — but only if everything follows the rules. Shares, property, cash, managed funds, gold and even crypto are all possible, as long as the investment fits your strategy, is properly documented and meets the ATO’s compliance standards.
If you want the freedom to choose your own investments without getting buried in admin, that’s what Jarospace handles.
CONTACT US
You can also write to us at
info@jarospace.com
Or call us on 0489 074 123
Business hours
9 am – 5 pm
Monday – Friday
We will respond to your enquiry
within 2 business days.
