Self-managed superannuation funds are a significant component of the Australian superannuation system, holding a substantial proportion of total superannuation assets despite representing a small number of total fund members. SMSFs give members direct control over their investment strategy and asset selection.
ATO Annual SMSF Statistics show that SMSF members are typically older, higher-income Australians with larger superannuation balances. The ATO recommends a minimum balance of around $500,000 before considering an SMSF, as the fixed costs of running a fund represent a higher proportion of returns for smaller balances.
SMSF trustees are responsible for complying with superannuation legislation, preparing annual accounts and tax returns, arranging an annual audit, and developing and documenting an investment strategy.
Insurance is an important consideration for SMSF members. Unlike APRA-regulated funds which provide default death and disability insurance, SMSF trustees must arrange their own insurance coverage.
Data sourced from ATO SMSF Annual Statistical Report. Updated annually.