What is an SMSF (self-managed super fund)?
A self-managed super fund (SMSF) is a superannuation fund you run yourself, as trustee, for up to six members — usually a family. You control the investments and the strategy, and in return you carry the compliance and legal responsibility a retail or industry fund would otherwise handle. It is control in exchange for responsibility.
By Justin Porrins, CFP® · SMSF Specialist Adviser™ · Last reviewed 25 June 2026
How an SMSF works
The members are also the trustees, so you make the investment decisions — within the rules. The fund must be run for the sole purpose of providing retirement benefits, follow a documented investment strategy, and be independently audited each year. SMSFs are regulated by the ATO.
What it lets you do that a public fund can’t
- Hold direct property, including the premises your business operates from
- Borrow to invest through a limited recourse borrowing arrangement (LRBA)
- Hold direct shares and other assets you choose yourself
- Coordinate super with a family trust or company structure
- Tailor estate, succession and death-benefit planning
The responsibility side
Control comes with trustee duties, real compliance obligations and running costs. An SMSF generally earns its keep once your balance and complexity are enough for that control to add more value than it costs in effort — not at a round-number balance alone.
Common questions
How many members can an SMSF have?
Up to six. Most SMSFs are a couple or a family, with all members acting as trustees (or directors of a corporate trustee) and sharing responsibility for running the fund.
Who regulates SMSFs in Australia?
The Australian Taxation Office (ATO) regulates SMSFs, including their compliance with super and tax law. APRA regulates the larger industry and retail funds instead.
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