Superannuation is often the largest investment many Australians hold, so it’s no surprise that more people are taking an interest in how their super is managed. A Self-Managed Super Fund (SMSF) gives you full control over your retirement savings, but it also comes with legal, financial, and administrative responsibilities.
So how do you know if you’re ready to take the leap and set up an SMSF? As SMSF accountants, we help clients weigh up their options and assess whether an SMSF is the right fit for their financial goals, risk profile, and lifestyle. If you’re considering taking control of your super, here are five key signs that suggest you’re ready to start your own SMSF.
1. You Want Control Over How Your Super Is Invested
The most common reason people start an SMSF is the desire for greater control. An SMSF allows you to choose exactly how your super is invested, from property and shares to ETFs, gold, and even cryptocurrency. You’re not locked into the investment menu of a retail or industry fund, giving you the ability to customise your portfolio to suit your goals and risk appetite.
However, with that freedom comes responsibility. You must be actively involved in managing the fund or hire professionals to assist with administration, compliance, and investment decisions. It’s not a “set and forget” structure.
See the ATO’s full guide: Before You Start an SMSF
2. Your Super Balance Is $200,000 or More
There’s no legal minimum to start an SMSF, but cost-efficiency is a key consideration. According to the ATO, the median annual cost of running an SMSF is around $4,000, which includes administration, auditing, and compliance fees. If your balance is low, these fixed costs could significantly erode your returns.
Research from Rice Warner found that SMSFs generally become cost-effective at around $200,000, and highly competitive with retail and industry funds at $500,000 or more.
In short, bigger balances mean better value when it comes to SMSFs.
3. You’re Financially Literate (or Have Expert Support)
Managing your own super fund isn’t just about choosing investments. You also need to ensure:
- The fund is structured and operated legally
- Financial records are accurately maintained
- Tax returns and compliance reports are submitted on time
- Your investment strategy aligns with retirement goals
That said, you don’t need to be a financial expert. Many trustees work closely with an SMSF accountant, a financial adviser, or both, to ensure they stay on top of their obligations and make smart decisions. If you’re willing to seek expert support and stay engaged in the process, you’re in a good position to manage an SMSF.
4. You’re In It for the Long Haul
An SMSF is not a short-term investment strategy. It works best when you have a clear, long-term plan, not only for building wealth but also for how you’ll draw down your super in retirement.
SMSFs are particularly appealing to people who:
- Want to integrate tax minimisation strategies
- Are thinking about intergenerational wealth transfer
- Want flexibility in how and when they start an account-based pension
This long-term view helps justify the time and administrative effort involved in managing the fund and helps reduce the impact of upfront setup costs.
5. You Have the Time and Commitment to Manage the Fund
Even if you outsource the tax and admin side of things, you’re still legally responsible for the SMSF as a trustee. That means you need to understand your obligations, stay up to date with ATO changes, and make informed decisions.
If you’re not confident in managing the fund yourself, you can engage an experienced SMSF accountant to guide you through setup, ongoing compliance, and annual reporting. What matters is that you’re actively involved in the fund’s operations and have systems in place to meet your obligations.
Still Not Sure? Here’s Where to Start
Before diving in, we recommend reading the ATO’s official guide here: Before You Start an SMSF – ATO
How a Specialist SMSF Accountant Can Help
At Schofields Accountants, we work with individuals and families across Australia to assess if an SMSF is the right fit. From setup to annual audits, we provide tailored guidance every step of the way. Our goal is to make the process easy to understand, fully compliant, and aligned with your long-term financial strategy.
Whether you’re ready to get started or want to explore your options, we’re here to help.
Book a no-obligation consultation today with our experienced SMSF accountants.
