Your SMSF Could Be Working Harder

You set up your SMSF for one reason: to take control of your retirement savings and do better than a one-size-fits-all industry fund.

But are you actually using it to its full potential?

At New Wave SMSF, we review dozens of funds every month from Gold Coast business owners. The pattern is clear: most trustees are using 2 or 3 of the strategies available to them. The rest is untapped potential — costing them in tax, missed growth, and lost retirement income.

Here are 10 ways to get more out of your SMSF in 2026.

1. Maximise Your Concessional Contributions

The 2025–26 concessional contribution cap is $30,000 per member. This includes employer super guarantee, salary sacrifice, and personal deductible contributions.

If you’re not hitting this cap every year, you’re leaving tax savings on the table. Every dollar contributed below your marginal rate (up to 47%) and taxed at 15% inside super is an immediate tax saving.

Action: Calculate your current concessional contributions (SG + any salary sacrifice). If there’s cap space, set up additional salary sacrifice or make a personal deductible contribution before 30 June.

2. Use Carry-Forward Unused Caps

If your total super balance is under $500,000, you can access unused concessional cap amounts from the past 5 financial years.

This is gold in high-income years — for example, if you sell a business asset or have a particularly profitable year. Instead of contributing just $30,000, you could potentially contribute $80,000 or more in a single year, all taxed at 15%.

Action: Check your unused carry-forward amounts via MyGov or ask your SMSF specialist. Plan to use them in your next high-income year.

3. Diversify Beyond a Single Asset Class

Too many SMSFs we review are concentrated in one asset — often a single property or all in bank shares.

Diversification isn’t just good practice — it’s a compliance requirement. Your investment strategy must demonstrate genuine consideration of diversification across multiple asset classes.

A well-structured SMSF portfolio typically includes:

• Australian shares (growth + dividends)
• International shares (global diversification)
• Property (direct or indirect)
• Fixed interest and bonds (stability)
• Cash (liquidity for expenses and pension payments)

Action: Review your current asset allocation. If more than 70% is in a single asset class, discuss rebalancing with your SMSF specialist.

4. Consider an LRBA for Property Investment

A Limited Recourse Borrowing Arrangement lets your SMSF borrow to purchase property — commercial or residential.

For business owners, the most powerful version of this strategy is purchasing your own business premises through your SMSF and leasing it back. Instead of paying rent to a landlord, you’re building equity inside your own super fund.

Action: If you’re currently renting commercial premises and your SMSF has at least 20–30% of the property value available, talk to your specialist about an LRBA purchase.

5. Implement CGT Harvesting Before June 30

Capital gains inside your SMSF are taxed at 15% (or 10% for assets held over 12 months). But you can reduce this further by selling loss-making investments to crystallise capital losses that offset your gains.

Example (hypothetical): Your SMSF realised $30,000 in capital gains from selling shares this year. You have another holding sitting at a $10,000 unrealised loss. Sell it before June 30 to reduce your taxable gain to $20,000 — saving $1,000–$1,500 in tax.

Action: Before each EOFY, review your portfolio for unrealised losses that could be harvested. Your specialist should do this as part of your annual review.

6. Switch to a Corporate Trustee

If your SMSF still uses individual trustees, consider switching to a corporate trustee structure. The benefits:

• ATO penalties are issued once (against the company) instead of per-trustee
• Better asset protection
• Simpler succession — no asset re-registration when members change
• Single-member funds become possible

The cost is modest: $800–$1,500 setup + $63/year ASIC fee. The risk reduction is significant.

Action: If you have individual trustees, discuss the transition with your SMSF specialist at your next review.

7. Review Insurance Inside Your Fund

Life insurance, Total and Permanent Disability (TPD), and income protection can all be held inside your SMSF. Premiums are tax-deductible to the fund — meaning they’re effectively paid from pre-tax money (taxed at 15%).

But many SMSF trustees either:

• Have no insurance inside their fund (underinsured)
• Have too much insurance that’s no longer appropriate (eroding their balance)

Action: Review your current cover. Is it appropriate for your age, family situation, and balance? Are you paying for cover you no longer need? Are the premiums competitive? Adjust accordingly.

8. Plan Your Transition to Retirement

If you’ve reached preservation age (60 for most people), a Transition to Retirement (TTR) strategy lets you draw a pension from your SMSF while still working and contributing.

The mechanics: salary sacrifice more into super (taxed at 15%), and replace that income with a TTR pension payment (tax-free after age 60). The net cash in your pocket stays similar, but the tax treatment is significantly better.

Action: If you’re over preservation age and still working, model a TTR strategy with your SMSF specialist. The tax savings can be substantial.

9. Optimise Your Pension Drawdown Strategy

Already in pension phase? Your drawdown strategy matters more than most people realise.

Key considerations:

• Minimum drawdown requirements — You must draw at least the minimum percentage based on your age (4% under 65, 5% at 65–74, etc.).
• Timing of drawdowns — Taking larger drawdowns early in the year gives you cash sooner but reduces the balance earning tax-free returns.
• Blending income sources — If you have other income (rental property, part-time work, investments outside super), coordinate your pension drawdown to minimise your overall tax position.
• Reversionary pension nominations — If you die, a reversionary pension automatically continues to your spouse without interruption. Without one, there’s a gap while the benefit is processed.

Action: Review your current drawdown rate and timing with your specialist. Ensure you’re drawing the right amount at the right time.

10. Get an Annual Strategic Review (Not Just Compliance)

This is the most important point on this list. Your SMSF specialist should be doing more than lodging your annual tax return and arranging the audit.

A genuine annual strategic review covers:

• Contribution optimisation — are you maximising caps?
• Investment strategy review — is your allocation appropriate for your age and goals?
• Tax planning — are you using CGT harvesting, contribution timing, and pension strategies?
• Insurance review — is your cover appropriate and competitive?
• Estate planning — are your binding nominations current?
• Performance benchmarking — how does your fund compare to relevant benchmarks?
• Regulatory changes — are there new rules that create opportunities or risks?

If you’re not getting this from your current specialist, you’re not getting the full value of having an SMSF.

Action: Ask your SMSF specialist when your last strategic review was. If the answer is “we don’t do that” or “it’s been a while” — it might be time for a change.

The Compounding Effect of Getting These Right

Implementing even 3 or 4 of these strategies can make a meaningful difference:

• An extra $5,000 in tax savings per year
• Compounded over 20 years at 7% growth
• Adds approximately $220,000 to your retirement balance

These aren’t abstract numbers — they’re the real-world impact of active SMSF management versus set-and-forget.

Frequently Asked Questions

How do I know if my SMSF is underperforming?

Compare your fund’s net return (after fees and tax) against the median balanced super fund return and relevant asset class benchmarks. If you’re consistently underperforming, your investment strategy, asset allocation, or costs may need attention.

Is it too late to maximise my SMSF if I’m close to retirement?

No. The 5 years before retirement are actually the most impactful time to optimise — through contribution maximisation, carry-forward caps, pension planning, and estate structuring. Even small improvements compound significantly.

How much should I be paying for SMSF management?

Annual compliance costs (tax return, financial statements, audit) typically range from $3,000 to $6,000. If you’re paying significantly more, or if your specialist charges extra for strategic advice, compare providers. At New Wave SMSF, strategic reviews are included in our annual service.

Can I implement these strategies myself?

Some — like maximising salary sacrifice — are straightforward. Others — like LRBAs, CGT harvesting, and TTR strategies — require specialist knowledge to implement correctly and avoid compliance breaches. The penalties for getting it wrong are severe.

What’s the single most impactful thing I can do for my SMSF right now?

Check if you’re maximising your concessional contributions. If there’s unused cap space, fill it before 30 June. This is the simplest, lowest-risk, highest-impact strategy available — and most trustees aren’t doing it.

Related Articles

• 5 Signs Your SMSF Is Underperforming
• SMSF Contribution Strategies: Get More Into Super
• 7 Tax Strategies Every SMSF Trustee Should Know
• How to Buy Commercial Property Through Your SMSF

General information only. This is not financial advice. Always seek advice from your SMSF specialist and financial planner before making decisions about your superannuation.

Representatives of NWG Financial Services Licence No: 538619