In this guide
Most people who choose to run their own self-managed super fund (SMSF) are drawn to the control and flexibility they offer.
But the reality is that unless you have a thorough understanding of SMSF rules and regulations, a high degree of investment knowledge, as well as plenty of time available to manage your fund, you’re likely to need at least some professional help.
There are plenty of SMSF service providers available, from specialists to one-stop shops, and those who offer traditional face-to-face services through to purely online providers.
When weighing up whether to seek advice, and the type of provider you should choose, consider factors such as:
- Your level of knowledge about SMSFs and investments
- The extent to which you want (or need) to outsource tasks associated with setting up and managing your SMSF.
It’s important to understand that even if you outsource some tasks, as a member of an SMSF you’ll also be a trustee of the fund and ultimately responsible for its compliance with superannuation and taxation legislation.
Compliance includes reporting and tax obligations to the Australian Taxation Office (ATO). There can be substantial fines or other penalties for non-compliant SMSF funds, even if the lapse was unintentional.
The ATO has been stepping up its SMSF compliance activity, so it pays to understand your obligations and seek professional help where appropriate.
In the 2023 financial year, the ATO issued $29 million in income tax liabilities, administrative and tax shortfall penalties on SMSF trustees. It also disqualified 753 trustees.
What kind of SMSF provider will I need?
While SMSFs are sometimes referred to as DIY funds, there are some activities you can’t perform yourself. For example, you will need to appoint an independent auditor. Some funds may also need a qualified actuary or an independent valuer to value certain assets such as collectables and property.
SMSF service providers can be divided into one of two broad categories:
- Specialist SMSF services (such as legal, tax, auditing, administration, valuer, actuarial or investment advice)
- ‘One-stop shops’ that integrate all the SMSF services outlined above (integrated service providers).
Visit the ATO online for more information on SMSF advisers and the types of services they provide.
ASIC’s Moneysmart also has tips on choosing SMSF advisers.
If you choose specialist service providers, you’ll need to be more active in coordinating their activities. For example, an SMSF administration-only service provider will work to ensure that your fund complies with super laws but won’t give you any advice on how to invest its members’ retirement savings. You’ll need to seek professional investment advice from another service provider or make those investment decisions yourself (or with your fund’s fellow trustees).
On the other hand, if you choose an integrated service provider, the coordination of all SMSF activities should occur naturally. Integrated SMSF service providers usually offer set-up and ongoing administration/management services and may even be able to provide investment advice.
