Written 8th of April 2026 – Originally published in the Hunter Business Review – April Edition
Key Message:
Self-managed super funds allow people to pick their own investments and track exactly where their money goes. Because the tax and legal paperwork is fairly intense, most trustees pay an admin service to handle the compliance side. This type of structure is common for accounts with more than $300,000 in them.
Self-managed super funds can be a very effective structure for the right client. The main attraction is control. Rather than having decisions, which include investment decisions largely dictated by a large institutional trustee, clients can take a far more direct role in determining how their retirement savings are managed.
For many clients, that is highly appealing. They want to control their own financial destiny rather than simply choose from a menu of options designed by someone else. An SMSF allows them to have a direct say in the assets held, the investment strategy adopted, the way cash is managed and the overall direction of the fund. For clients who value involvement and want a structure that reflects their own objectives, this can be a significant advantage.
Transparency is another major benefit. In many larger superannuation funds, clients receive periodic reporting and broad asset allocation summaries, but they often do not have a detailed understanding of the underlying investments. In an SMSF, the structure is much more visible. Clients can generally see exactly what the fund owns, what income it is producing, how the portfolio is positioned and how decisions are being implemented. That level of visibility often leads to better engagement and a stronger sense of ownership over long-term retirement planning. This is paramount for clients when markets get turbulent, and they need to be able to ride out the noise. It is much easier to do this if you understand what you own and why you own it.
That said, our position is not that an SMSF is attractive simply because it offers control. We also recognise that these structures come with responsibilities. Running an SMSF is not just about choosing investments. It also involves other strategic decisions and strategies, maintaining records, lodging annual returns, arranging an annual audit and ensuring the fund remains compliant with its legal and tax obligations.
Those responsibilities are real and should not be understated.
This is why we believe an SMSF works best where clients want the strategic benefits of control and transparency, but also understand that the structure must be properly administered. In practice, we utilise a specialist service provider to assist with the execution of these duties. That includes helping with administration, annual reporting and the audit process so that the fund’s compliance obligations are met in an orderly and professional manner.
This means clients are not left to deal with every operational requirement on their own. Instead, they retain control over the important strategic decisions while using professional support to assist with the practical execution of the structure. In our view, that is often the right balance. The client remains actively involved in shaping their superannuation strategy, but the administration and compliance framework is supported by specialists who understand the requirements.
We also acknowledge that an SMSF is not suitable for every person or every family. The structure needs to be worthwhile relative to the time, cost and responsibility involved. As a general guide, where combined family superannuation balances are above $300,000, an SMSF may start to become a structure worth considering. That does not mean every family above that level should establish one, but it can be a useful point at which the benefits of control, transparency and strategic flexibility may justify closer review.
Our recommendation is therefore selective. We recommend SMSFs where the client values direct involvement, wants better visibility over their retirement capital and is prepared to operate within a properly supported compliance framework. We do not recommend them simply because they are fashionable or because they allow more investment choice.
Ultimately, the real value of an SMSF is that it allows the right client to take greater ownership of their superannuation. They are not simply accepting decisions made by an external trustee. They are actively involved in building and overseeing their own retirement strategy, while using professional services to assist with the ongoing obligations that come with that control.
For clients who want transparency, involvement and the ability to shape their own financial future, an SMSF can be a very effective structure. The key is ensuring that control is matched with proper support, sound administration and a clear understanding of the responsibilities involved.
This information is general advice and does not take account of investors’ objectives, financial situation or needs. Before acting on this general advice, investors should therefore consider the appropriateness of the advice having regard to their objectives, financial situation or needs.
Written by Rob Coyte
CEO – Shartru Wealth
