Is an SMSF Right for You? 7 Questions to Ask First

A self-managed super fund (SMSF) gives you direct control over how your retirement savings are invested. That control is the main appeal, and it comes with real legal responsibilities, ongoing costs and a time commitment that many people underestimate.

Before you move your super, it pays to work through a few honest questions. Here are the seven we cover with people who come to us for SMSF advice in Brisbane.

1. Why do you want an SMSF?

Start with the reason. Common ones include wanting to choose specific investments (such as direct shares or term deposits), buying a business premises through super, pooling super with family members, or simply wanting more visibility and control.

Some reasons don't hold up as well. If the main driver is a sales pitch for a property, a product or a "strategy" bundled with the SMSF setup, treat that as a warning sign. An SMSF should be the right structure for your goals, not a vehicle for someone else's product.

2. Are you ready to be a trustee?

Every member of an SMSF must be a trustee (or a director of the fund's corporate trustee). That means you are legally responsible for the fund complying with super and tax law, even if you pay professionals to help with the paperwork.

Within 21 days of becoming a trustee you must sign the ATO's trustee declaration, confirming you understand your duties. Those duties include:

• running the fund for the sole purpose of providing retirement benefits to members

• keeping the fund's money and assets separate from your own

• following the rules on related-party dealings and in-house assets

• keeping proper records and minutes

• having the fund audited every year by an approved SMSF auditor and lodging an annual return with the ATO.

If a trustee breaks the rules, penalties can apply personally, and the fund can lose its concessional tax treatment.

3. Is your balance large enough to justify the costs?

Many SMSF costs are fixed: accounting, the annual audit, the ATO supervisory levy (currently $259 a year, with a new fund paying two years upfront) and any advice fees. Because these costs don't shrink with a smaller balance, they take a bigger bite, as a percentage, out of a smaller fund.

There is no single "right" balance. The useful exercise is to compare the total expected cost of running an SMSF with what you pay in your current fund, then ask whether the extra control is worth the difference for you.

4. Do you have the time and interest?

Running an SMSF isn't a set-and-forget arrangement. Trustees need to review the fund's investments, keep records up to date, respond to the auditor and make decisions when circumstances change. If you'd rather not think about your super for months at a time, a large public fund may suit you better.

5. Can you build and stick to a sound investment strategy?

Every SMSF must have a written investment strategy that trustees review regularly. It needs to consider diversification, risk and likely return, liquidity, the fund's ability to pay benefits and expenses, and whether to hold insurance for members.

One common risk is concentration: an SMSF with most of its money in a single property or a handful of shares can be exposed if that one asset falls in value or can't be sold quickly when cash is needed.

6. What happens to insurance?

Many people hold life, total and permanent disability (TPD) or income protection insurance through their existing super fund, often without realising it. Rolling your whole balance out can cancel that cover. Before you move anything, check what cover you have and whether you can replace it, as new cover may cost more or be harder to get depending on your health and age.

7. Who else will be involved, and is there a plan for the future?

An SMSF can have up to six members. Pooling super with a spouse or family members can make sense, but every member is a trustee with a say in decisions. Think about what happens if relationships change, if a member loses capacity, or when a member dies. A good SMSF setup includes thinking about binding death benefit nominations, a corporate trustee and succession from day one.

Changes on the way for new SMSFs

The Government has announced reforms aimed at protecting people setting up new SMSFs, including proposed trustee education, stronger checks on rollovers into new funds and more disclosure of who advised on the setup. These measures had not become law as at November 2026, but they signal a clear message: regulators want people to understand what they're signing up for before they start.

The bottom line

An SMSF can be a powerful structure for the right person, giving you control, flexibility and the ability to hold assets that public funds can't offer. It also makes you responsible for decisions that are normally handled by a professional trustee.

If you're weighing up whether an SMSF suits you, our SMSF advice service starts with a straight answer on whether it makes sense for your situation, including when it doesn't. You can book a free first meeting at our Brisbane CBD office.

Free download: check your own fund with our 20-point SMSF Health Check.

General advice warning: This article is general information only and does not take into account your objectives, financial situation or needs. Consider whether it is appropriate for you and obtain personal financial advice before acting on it. Information is current as at November 2026 and may change. Jonas Wealth Management is a trading name of TTJ Capital Pty Ltd (ABN 74 648 477 221). Tyson Jonas is an Authorised Representative (No. 1252754) of Bluewater Financial Pty Ltd, AFSL 411846.