An SMSF is often marketed as the ultimate way to take control of your retirement savings. That is true for the right person. It is not true for everyone, and a genuinely good SMSF adviser will tell you honestly when a self-managed fund is not the best fit for your circumstances, not just how to set one up as quickly as possible.
The sector itself is growing at a pace that suggests plenty of people are deciding an SMSF is right for them. According to the ATO’s March 2026 statistics, there are now 672,805 SMSFs in Australia, up by around 38,885 funds, a 6.1 per cent increase, over the preceding twelve months alone.
What an SMSF Actually Requires
Running an SMSF means you, as trustee, are legally responsible for the fund’s compliance, investment decisions, and administration, even where you engage professionals to help with the detail. This is materially different from being a member of an industry or retail super fund, where a professional trustee carries that legal and administrative responsibility for you.
Before considering an SMSF, it is worth being genuinely honest about three things: how much time and attention you are realistically willing to give it on an ongoing basis, how much you have available to invest, and how comfortable you are with the compliance obligations that come with being a trustee.
What the Balance Numbers Actually Show
According to the ATO’s latest annual statistical overview, the average SMSF held assets of $1.63 million in 2023-24, up 29 per cent over the preceding five years, while 41 per cent of all SMSFs held assets between $200,001 and $1 million. Because most SMSF costs, accounting, audit, and administration, are largely fixed rather than scaling proportionally with balance, the relative cost-effectiveness of running an SMSF genuinely improves as your balance grows.
When an SMSF Tends to Make Sense
- You have a reasonably substantial super balance, where the fixed costs of running the fund represent a sensible proportion of the balance
- You are a business owner with specific strategies in mind, such as using the fund to own the commercial property your business operates from
- You want more control and visibility over your specific investment decisions than a public fund’s pooled options offer
- You are willing to engage professional support for accounting, compliance, and financial planning, rather than treating the fund as a purely do-it-yourself exercise
When an SMSF Is Often Not the Right Fit
- Your balance is modest and the ongoing fixed costs would outweigh the likely benefits compared to a well-run industry or retail fund
- You are genuinely looking for a low-involvement retirement savings vehicle
- You do not have the time, interest, or support structure to stay on top of the compliance obligations that come with being a trustee
- Your primary motivation is a single strategy, such as property, that could realistically be pursued in a different, simpler way
The Real Cost of Getting This Decision Wrong
Setting up an SMSF you are not genuinely equipped to run is one of the more expensive mistakes we see, not because SMSFs are inherently risky as a structure, but because a poorly run fund tends to accumulate compliance issues, missed contribution or tax opportunities, and unnecessary costs that outweigh whatever control it was originally meant to deliver.
How New Wave SMSF Helps
Our first conversation with a prospective client is genuinely a suitability conversation, not a sales pitch dressed up as one. We look at your balance, your goals, your business structure if relevant, and your genuine appetite for ongoing involvement, and we will tell you honestly if an SMSF is or is not the right structure for you.
Frequently Asked Questions
Is there a minimum balance required to set up an SMSF?
There is no legal minimum balance requirement. However, because most SMSF costs are largely fixed rather than scaling with balance, the relative cost-effectiveness generally improves as your balance grows.
What are the ongoing costs of running an SMSF?
Ongoing costs typically include accounting and administration fees, the annual independent audit, and the ATO’s supervisory levy, along with any costs specific to your fund’s investments.
Can I set up an SMSF just to buy one investment property?
You can, but it is worth being honest about whether the full ongoing responsibilities of SMSF trusteeship are proportionate to a single-purpose strategy, particularly given recent changes to residential property borrowing rules.
How long does it take to wind up an SMSF if it turns out not to be right for me?
Winding up an SMSF involves settling the fund’s affairs, disposing of or transferring its assets, completing a final audit and tax return, and formally closing the fund with the ATO.
Do I need a financial adviser to set up an SMSF?
It is not a strict legal requirement, but given the compliance obligations and the significance of the decision, most people benefit from a genuine suitability assessment and ongoing professional support.
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This article is general information only and does not take into account your personal objectives, financial situation, or needs. It does not constitute financial, tax, or legal advice, and does not consider whether an SMSF is appropriate for you specifically. Figures referenced are drawn from published ATO statistics and are current as at the date of publication. New Wave Financial Planning Pty Ltd is an Authorised Representative of NWG Financial Services Pty Ltd, AFS Licence No. 538619. Please speak with your New Wave SMSF adviser before acting on any information in this article.