Access specialist establishment and administration services for the compliance and audit of your self managed super fund.

The popularity of self managed super funds (SMSFs) continues to grow rapidly, with over 800,000 Australians investing around $280 billion of superannuation through DIY funds. Most people who start self managed super funds say that one of the main reasons they do so is to have more control over their super. Others will use a SMSF because it is the only way they can acquire certain assets (eg property) through their super. Others say that it is because the costs are less than others forms of super.

The below table summarises some of the main advantages of self managed super funds:

	Advantage	Disadvantage
You get to take more control of your super	With a self managed super fund you get full control of your super and can invest the money where you choose (subject to meeting the super rules).	With the control comes more responsibility. As a SMSF Trustee you need to be aware of the super rules and make sure the fund operates within the rules.
You get a lot more investment options	SMSFs provide the widest choice of investments for your super including shares, managed funds, property trusts, fixed interest, direct property etc etc.	You need to be capable of making these decisions and deciding at what time to be invested in which investments. You can however appoint an adviser or broker to assist you.
You get responsibility for looking after your super	You are in charge but you can delegate certain functions to professionals. For example you can delegate administration to a specialist SMSF administration services provider.	The penalties for not operating self managed funds correctly and within the rules are very harsh.
You can save on fees	Where you have substantial amounts of super (ie usually more than $300,000) you will generally be able to run your SMSF cheaper than alternative types of super funds.	Where your total superannuation is less than around $300,000, a SMSF may cost you more to run than a retail of industry super fund.
You can borrow for certain assets	If your investment strategy incorporates higher risk you can now effectively gear up your super to buy assets (eg property) via certain types of loans or self funding instalments.	Gearing your super may not be appropriate for you and there are additional costs associated with super borrowing.
You get transparency	You will have a portfolio of investments which typically comprise cash, Australian shares, listed property trusts and some managed funds. It is very transparent and very easy to work out why it is going up or down in value.	With other options investors may have a lot of choices but typically it might be a balanced risk option which has underlying fund managers managing the money and they invest in cash shares, and property trusts. It is a lot more difficult to work why it is going up or down in value.

While self managed super funds can be a very good way of looking after your super, it is extremely important that for trustees to understand what they are doing, and if in doubt get some advice and/or assistance. The penalties for getting it wrong and becoming a non complying fund are severe.

	Thinking about self managed super: Six steps to determine if managing your own super is right for you
	Setting up a self managed super fund: What you need to know
	Running a self managed super fund: Your role and responsibilities as a trustee
	SMSF Trustee: Trustee education program released by the CPA, CA and NIA