An SMSF (Self Managed Super Fund) is a private super fund that you run yourself. Instead of having your super managed by an industry or retail fund, you make the investment decisions and an SMSF tax agent handles the admin, accounting, reporting and audit. It gives you control, flexibility and choice — but also more responsibility.
Here’s a simple breakdown of what an SMSF actually is and how it works.
An SMSF is a super fund you manage yourself
The core idea is simple:
You decide where your retirement money goes.
You’re in charge of:
- the investment decisions
- the risk level
- the strategy
- when to buy and sell assets
The fund exists solely to provide retirement benefits, and the ATO makes sure trustees follow that purpose.
An SMSF can have up to six members
Most SMSFs are run by couples or families.
Every member must also be a trustee (or a director of the corporate trustee).
This means:
- everyone has responsibility
- everyone has a say
- everyone has legal obligations
You can’t have passive members who sit back and ignore the rules.
Trustees make all the investment decisions
With an SMSF, you choose what the fund invests in, including:
- shares
- ETFs
- managed funds
- cash
- term deposits
- property
- cryptocurrency
- precious metal bullion
- some alternative assets like motor vehicles, collectibles (with strict rules)
This flexibility is one of the main reasons people choose an SMSF — you’re not locked into a preset menu.
Every SMSF needs a trust deed
The trust deed is the rulebook.
It sets out:
- who the trustees are
- what the fund can invest in
- how benefits can be paid
- how decisions are made
An SMSF legally cannot operate without a valid trust deed.
The fund must follow ATO rules
The ATO oversees all SMSFs and expects strict compliance.
The fund must:
- keep SMSF assets separate from personal assets
- follow the sole-purpose test
- document its investment strategy
- lodge an SMSF annual return
- undergo an independent audit every year
If something goes wrong, trustees — not the fund — are held personally responsible.
An SMSF comes with ongoing admin
Even if you outsource the heavy lifting to an SMSF tax agent, trustees still need to:
- sign documents
- approve the investment strategy
- understand the fund’s activities
- keep records
- stay involved in decision-making
It’s not a set-and-forget structure.
You can start an SMSF for more control
People usually choose an SMSF because they want:
- full control over investments
- access to a wider range of assets
- the ability to tailor their retirement strategy
- direct ownership of assets (like property)
- a structure that suits families or business owners
It’s ideal if you want hands-on involvement and are comfortable making your own decisions.
How big does your balance need to be?
There’s no legal minimum, but an SMSF needs to be cost-effective.
Because the admin fees are mostly fixed, it usually makes sense when the combined balance is higher rather than lower.
Most people start when they have enough saved that the control and flexibility outweigh the admin costs.
The bottom line
An SMSF is a private super fund you manage yourself. It gives you control, choice and flexibility — but also legal responsibilities and ongoing admin. If you want the freedom to shape your retirement your way while staying compliant, an SMSF can be a strong option.
If you like the idea of running your own super but don’t want the paperwork, that’s where Jarospace steps in.
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If you like the idea of setting up an SMSF to control your retirement savings:
