A self-managed super fund is the most hands-on way to run your retirement savings. Instead of leaving your money with a large industry or retail fund, you and up to five other members become the trustees — you choose the investments, you hold the assets, and you carry the legal responsibility for the fund. For many professionals and business owners — in North Sydney and across our Sydney, Melbourne and Brisbane offices — that control is the whole appeal.
It also comes with obligations that don’t apply to an ordinary super account. Before you start one, it’s worth understanding three things clearly: whether an SMSF actually suits your situation, what it costs to set up and run, and what the compliance year looks like. This guide walks through each.
Is an SMSF right for you?
An SMSF isn’t automatically better than a large fund — it’s better for a particular kind of member. It tends to suit people who want a level of control and flexibility a pooled fund can’t offer:
- A meaningful balance. The fixed annual costs of running a fund are easier to justify once combined member balances reach a reasonable level. Below that, percentage-based fees in a large fund are often cheaper.
- A specific strategy. Direct property, a business premises held in super, particular share portfolios, or coordinated estate planning are common reasons members move to an SMSF.
- A willingness to be a trustee. You’re legally responsible for the fund’s decisions even if you delegate the admin. That responsibility doesn’t go away.
If none of those apply, a well-run superannuation strategy inside an existing fund may serve you just as well. The right answer depends on your numbers and goals — which is exactly what a first conversation is for.
What it costs to set up
Setting up an SMSF involves establishing the fund’s trust structure, its trust deed, and — in most cases — a corporate trustee company. Ongoing, the fund needs annual accounts, a tax return, and an independent audit every year.
The figures below are indicative ranges for a straightforward fund; your actual costs depend on the fund’s complexity, its investments, and who administers it.
| Cost | Indicative range | Frequency |
|---|---|---|
| Fund establishment (deed + setup) Corporate trustee company | $1,600 – $3,200 | One-off |
| Accounting & annual tax return | $1,500 – $3,000 | Yearly |
| Independent SMSF audit | $400 – $700 | Yearly |
| ATO supervisory levy | $259 | Yearly |
Because most of these costs are fixed rather than a percentage of the balance, they weigh more heavily on smaller funds and become proportionally cheaper as the fund grows. Getting the SMSF administration handled properly from year one keeps these costs predictable and avoids the far larger expense of fixing compliance problems later.
The compliance load
This is the part members most often underestimate. An SMSF is regulated by the ATO, and every fund must meet the same annual obligations regardless of its size. The core of it:
- Annual accounts and tax return. The fund’s financial position, member balances, and income all have to be recorded and lodged each year.
- Independent audit. Every SMSF must be audited annually by an approved SMSF auditor before the return is lodged — this is not optional.
- Asset valuations. Fund assets must be recorded at market value each year, which matters especially for property and unlisted investments. These must be conducted via a professional, unrelated valuer.
- An investment strategy. Trustees must have a documented strategy and review it regularly, considering diversification, risk, liquidity and members’ insurance needs.
- Keeping fund and personal money separate. SMSF assets must be held strictly apart from your own — one of the most common areas where trustees slip up.
Miss these and the consequences are real: administrative penalties applied personally to trustees, and in serious cases the loss of the fund’s complying status, which carries a heavy tax cost. This is why most trustees don’t self-administer — they keep control of the decisions while handing the compliance machinery to a specialist. AGS manages more than 500 funds through its SMSF service, so the annual cycle runs to a known process rather than a yearly scramble.
SMSF and property — what’s changed in 2026
Property has long been one of the main reasons people in Sydney move to an SMSF — either a residential investment or a commercial premises used by their own business. Funds could also borrow to buy property through a limited recourse borrowing arrangement (LRBA). For residential property, that borrowing is now being closed off.
In June 2026, Parliament passed legislation banning SMSFs from entering new limited recourse borrowing arrangements to buy residential property, with the ban commencing on 10 August 2026. The key points:
- Existing arrangements are grandfathered. If your fund already holds a residential LRBA, nothing changes — it isn’t unwound, and it can still be refinanced.
- Contracts already exchanged are protected. Arrangements where contracts were signed before the commencement date fall outside the ban, even if settlement happens later.
- Commercial and business real property are unaffected. An SMSF can still borrow to buy business premises and other commercial property under the existing rules.
- Buying residential property outright still works. The ban is on borrowing — a fund with the cash to buy residential property without a loan isn’t affected.
The upshot: geared residential property is closing as a new SMSF strategy, while commercial-property borrowing and ungeared purchases continue. Property in super has always been one of the easiest areas to get wrong — the asset must be held under strict rules, any borrowing structured correctly from the outset, and a business premises leased back on genuine commercial terms. With the rules and timing now tighter still, this is firmly a strategy to plan with advice before you commit — not after.
Getting SMSF advice near you
An SMSF rarely sits in isolation. It usually connects to your broader retirement plan, your tax position, and — if property is involved — your borrowing. That’s where having your adviser, accountant and the fund’s administration under one roof matters: the strategy, the tax treatment and the compliance all stay aligned instead of being handled by three firms who never speak.
AGS runs its SMSF service across all six offices, so wherever you are the planning and the numbers are handled together by a local team — and backed by a dedicated administration team that keeps the fund compliant year after year:
- Sydney — North Sydney, Norwest, Miranda and Hurstville
- Melbourne — South Melbourne
- Brisbane — Newstead
Where to start
If you’re weighing up whether an SMSF is the right move — or you already have one and want it run more smoothly — the first step is a simple conversation about your situation. We’ll be honest about whether a fund makes sense for you, what it will realistically cost, and how the compliance would be handled.
Book a free initial discussion with the AGS SMSF team, and we’ll help you decide with a clear picture rather than a sales pitch.