More Australians are choosing SMSFs for control and flexibility. Learn how self-managed super funds work, their benefits and when they make financial sense.
Superannuation is one of the most significant investments Australians make in their lifetime, yet few truly understand where their money goes or how it’s managed. That’s why more Australians are choosing to take control of their retirement savings through a Self-Managed Super Fund (SMSF).
As of June 2025, the Australian Taxation Office reports more than 653,000 SMSFs, representing 1.2 million members and holding over $1.05 trillion in assets (Source: ATO 2025).
That’s nearly one in every four dollars of Australia’s $4.4 trillion superannuation system, a powerful signal that self-management is here to stay.
Taking control in uncertain times
Periods of market volatility tend to prompt a fresh wave of interest in SMSFs. When returns dip or headlines highlight data breaches or fund underperformance, Australians naturally seek more transparency and control.
“We often see more people exploring SMSFs during volatile markets or when confidence in larger institutions is shaken,” says Executive Adviser Kristian Tribuiani.
“The appeal is simple; you decide where your retirement savings are held and how they’re invested.”
All members of an SMSF are also trustees, meaning they’re responsible for key investment decisions and ensuring compliance with super laws. For many, that sense of ownership is both empowering and rewarding, especially when paired with professional guidance.
The freedom to invest your way
Unlike retail or industry funds, SMSFs open the door to a far broader range of investment options. Trustees can hold traditional assets like shares, ETFs and term deposits, or diversify into direct property, private equity, bullion or even collectibles, provided they comply with ATO rules.
“A common misconception is that SMSFs are only for the wealthy or those with complex portfolios,” notes Kristian. “In reality, they’re about empowerment, aligning your investments with your values, objectives and appetite for risk.”
This flexibility allows members to tailor portfolios around their goals, life stages and comfort with risk, rather than accepting the one-size-fits-all approach of many large super funds.
Property as part of your retirement plan
Property continues to be one of the most attractive features of an SMSF. While most large super funds can’t hold direct real estate, SMSFs can — and many business owners take advantage of this to hold their commercial premises within their fund.
This can help turn rent into retirement income and create long-term tax efficiencies.
“Running an SMSF can be incredibly rewarding, but it’s not something to take lightly,” says Kristian. “We help clients assess whether they have the time, interest and support to manage the added responsibility that comes with full control.”
When the numbers start to make sense
While SMSFs offer flexibility, they only become cost-effective beyond a certain balance. Research from Rice Warner (2020), commissioned by ASIC, and a 2023 ATO–University of Adelaide study both found that SMSFs with balances of around $250,000 to $500,000 tend to perform as well as or better than larger retail and industry funds. Below that level, fixed audit and administration costs can outweigh the benefits.
“For clients with larger or more diverse portfolios, an SMSF can be a very cost-effective way to consolidate and manage investments, particularly where property or intergenerational wealth is involved,” says Kristian.
Unlike most retail funds that charge fees as a percentage of assets, SMSFs usually have fixed running costs, meaning the larger the fund, the more efficient it becomes over time.
Working together: your adviser and accountant
Managing your own super isn’t a solo task; it’s about building the right team. An SMSF has two key professional roles that work hand in hand: the financial adviser and the accountant or administrator.
Your adviser helps you design and manage the strategy — setting investment objectives, assessing risk tolerance, and ensuring your SMSF fits into your broader wealth plan. They also guide decisions around insurance, pension drawdowns and how legislative changes, like the proposed $3 million balance tax, might affect your long-term goals.
Your accountant focuses on the compliance side — preparing financial statements, lodging tax returns, and ensuring your fund meets all reporting and audit requirements under ATO supervision.
“A successful SMSF relies on a partnership between strategy and compliance,” says Kristian. “The adviser focuses on where your money is heading; the accountant ensures it meets all the rules along the way.”
A shifting tax landscape
From 1 July 2025, the Federal Government plans to introduce a 30% tax on earnings for individuals with total super balances above $3 million.
While this affects only a small percentage of Australians, it has prompted many high-balance clients to revisit how their assets are structured and whether an SMSF remains the best fit.
“We’re helping clients navigate how the proposed $3 million tax cap might impact their strategy,” explains Kristian. “For some, that might mean rebalancing between super and non-super investments; for others, it’s about ensuring their SMSF continues to work efficiently, if this rule gets legislated.”
For most, this change reinforces the importance of personalised advice, having the right structure, balance and strategy as policy evolves.
Planning beyond your lifetime
An SMSF isn’t just about accumulating wealth; it’s about protecting and transferring it. Through binding death benefit nominations, trustees can control how benefits are distributed, offering certainty that a will alone can’t guarantee.
For families, SMSFs can also serve as intergenerational structures, allowing adult children to join and continue building collective wealth.
“People often underestimate the security and flexibility that come with SMSFs. You decide where your assets are held, how diversified they are, and can respond quickly to market changes. It’s a level of oversight most big funds simply can’t offer,” adds Kristian.
Is an SMSF right for you?
Setting up an SMSF is a long-term decision that blends independence with responsibility. It suits people who are financially engaged, value transparency, and want their investments to reflect their personal priorities.
Before making the move, speak with your adviser about whether an SMSF aligns with your goals, lifestyle and balance size, and how the right support team can keep both your strategy and compliance on track.
Source references:
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Australian Taxation Office, SMSF Quarterly Statistical Report – June 2025
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Rice Warner, Costs of Operating SMSFs, commissioned by ASIC (April 2020)
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ATO & University of Adelaide, Comparing SMSF and APRA Fund Performance (November 2023)
About the Author
Kristian Tribuiani
Executive Adviser, Viridian Advisory – Melbourne, VIC
Kristian is committed to empowering people to make sound financial decisions. His expertise spans superannuation, risk management and insurance, self-managed super funds (SMSFs), asset allocation, financial goal setting, retirement planning, wealth protection, social security and investment structures.
If you’re considering whether an SMSF is right for you or want to strengthen your long-term financial plan, connect with Kristian below.
