Benefits of Self-Managed Superannuation Funds


A self-managed super fund (SMSF) is a privately controlled superannuation fund, with the sole aim of guaranteeing retirement benefits. As an SMSF trustee, you control where your fund is invested and determine how your money is managed. Having better visibility over your retirement savings leads to a deeper comprehension of your general wealth, giving them confidence in their lifestyle decisions. Here are some key benefits of managing an SMSF: 

Investment Choice

An SMSF offers a variety of investment options that aren’t available in other private superannuation funds. Provided that the investment conforms to the requirements, an SMSF will invest in nearly anything desired, including direct property. SMSF trustees can access term deposits, direct shares, unlisted assets, international markets, income investments, and more. 

Flexibility and Control

The sole reason why individuals opt for SMSFs is control. With an SMSF account, individuals have total flexibility and control over how their retirement savings will be invested. By controlling your investments directly, you can make immediate adjustments as soon as you identify any abrupt investment opportunities or notice any major change in the market. 

Better Tax Strategies 

All super fund members benefit from having their contributions and earnings taxed at a concessional rate. Although all these benefits are offered to all super fund members, SMSFs provide you with more flexibility and consider your group structure. While transitioning to retirement, proper tax strategies will help you lower tax payments and increase your super savings. 


SMSF trustees have to file an annual audit and tax return, as well as pay the ATO (Australian Tax Office) fees, which are not dependent on a percentage of your super fund. As your SMSF increases, it becomes more cost-effective. However, the overall cost of managing an SMSF will primarily depend on any cost related to engaging expert support and the related investments. 

Estate Planning 

An overlooked benefit of an SMSF is the extra planning and flexibility for death benefits. Dissimilar to other super funds which often require regular updates for death benefits nomination, an SMSF will make irrevocable death benefits nominations that won’t lapse. SMSFs are also more flexible in their distribution. 


An SMSF also provides major transparency that gives trustees the opportunity to align their investment decisions with their personal goals. Whether you are into ethical and sustainable investing, property, or shares, SMSFs offer a platform that ensures you fully understand where your funds are invested, with visibility over tax treatment and performance. 

Merge Superannuation Assets 

Currently, SMSFs allow trustees to consolidate their super accounts with about 3 other individuals such as family members or partners. Merging superannuation assets creates an even more substantial fund balance, which improves investment opportunities and the fund’s assets while dealing with only one set of fees. 

Asset Protection

Due to the Bankruptcy Act, super funds aren’t regarded as property. SMSFs also offer an effective means of protecting your assets from claims from creditors in the future or bankruptcy.

While super funds such as SMSFs need a lot of personal effort to manage, their benefits surpass the downsides. You can hire experienced SMSF accountants to complete your SMSF setup and aid you in managing this private super fund.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.