10 June 2025
Everyone’s goals in saving for the future are different. Some may seek a concrete pathway to generate funds on which to retire comfortably. Others might be working towards building wealth that can support children and family as they age, too. Whatever your goals look like, superannuation is an important tool that empowers you to invest in your future.
And for those with the accumulated wealth, financial acumen, and the drive to do it, a self-managed super fund (SMSF) is a valuable tool that gives greater control over how you invest your retirement savings.
“On paper, the goal of a self-managed super fund is exactly the same as a retail or industry super fund: that is, to provide you with an income stream in retirement,” says AR & B Advisors Principal, Jason Barbetti. “Your money is still invested in shares, property, and other assets—the biggest difference is that it’s administered by you.”
As the trustee of your SMSF, the day-to-day management is entirely your responsibility. You’re the one who makes the investment decisions, arranges for employers to contribute to the fund, makes member contributions, and considers pension commencement.
And while you may get more control over where your funds are invested, there are a number of challenges that come along with it.
It’s up to you to meet compliance deadlines
Where a retail or industry super fund is regulated by the Australian Prudential Regulation Authority (APRA), a SMSF is regulated by the ATO. As such there are different compliance dates that SMSF trustees need to meet.
“Managing a SMSF is more involved than just selecting investments and getting your contributions in on time,” reminds Jason. “When you administer your SMSF there are rules and regulations you need to be aware of, along with compliance deadlines that you must meet.”
You need to be aware of dates like:
- Annual tax return: When undertaken by a registered tax agent, your annual return needs to be lodged by 15 May the following financial year. If you’re a newly registered SMSF this is brought forward to 28 February.
- PAYG: If you have PAYG withholding requirements, these need to be paid within 28 days of the end of each quarter.
- BAS: If your super fund is GST registered you face the deadline for all BAS preparation, which is 28 days after end of that quarter.
- ASIC: There’s also the Australian Securities and Investments Commission (ASIC) deadline for lodging your annual company statement (if the trustee of the fund is a company). The timing of this depends on the date the fund was incorporated. The payment date of the annual ASIC invoice is three months after the yearly anniversary.
You’re in charge of following rules and regulations
SMSFs are legislated by the Superannuation Industry (Supervision) Act 1993, commonly known as the SIS act. This Act is regulated by APRA and ASIC. The ATO also plays a significant role in regulating SMSFs under the SIS Act.
“The SIS Act is a long, complicated piece of legislation, but one that’s vital to get an understanding of if you manage a SMSF,” Jason notes.
Breaching the SIS regulations will result in Contravention Reports being lodged with the ATO by the auditor of the fund.
A key requirement for trustees of superannuation funds is to ensure it meets the sole purpose test. The test is designed to ensure that your SMSF only works to provide retirement or death benefits to members or their dependents. This sounds easy, in theory. However, breaching this test can lead to significant penalties, including loss of tax benefits.
There are also regulations around lending money to members of the SMSF, borrowing money, who you acquire assets from, concessional and non-concessional contributions, and paying benefits early.
“Any serious contravention brings with it the very real possibility of the fund’s trustees and members being disqualified as a trustee,” warns Jason. “This means you would have to wind up the fund and roll the member balances into an industry or retail fund, effectively eliminating any benefits you received from your SMSF. Your name is then placed on the disqualified trustee register for all to see.”
Navigating superannuation contributions and limits
Much like an industry or retail super fund, SMSFs can also take advantage of the concessional contribution limit (currently $30,000) and the non-concessional limit ($120,000).
If your member balance is less than $500,000, and you haven’t used the full concessional limit for the previous five financial years, you can carry these forward to the current financial year. Similarly, you can bring forward up to three years of non-concessional contributions—giving you a maximum of $360,000 for that three year period—to help accelerate your super balance.
You also need to stay on top of changes in legislation
As the one in control of your super, any change to legislation can impact how you manage your fund.
For example, the government’s announcement to change the taxing of superannuation funds with member balances in excess of $3 million.
“This is a massive shift in policy. Until now, the government has only taxed real, tangible gains,” says Jason. “This means that if your assets or shares appreciate, and you don’t sell then, you’re hit with additional tax. You’re getting taxed on unrealised gains, rather than realised gains.”
While it’s estimated that this reform only affects around 80,000 Australians today, this number will change in the future.
“SMSF administrators with significant balances need to be aware of this change,” cautions Jason. “After all, it may not affect you now, but if your SMSF is on that trajectory it could affect you in the future if you’re not prepared.”
Similarly, the general transfer balance cap will increase to $2 million from the 2025-26 financial year. This means that the maximum amount individuals can contribute into their superannuation fund is $2 million—another important figure trustees and members need to be aware of.
Engaging a full-service SMSF provider can alleviate these challenges
Partnering with a trusted accountant and financial advisor can help you to meet these SMSF challenges head-on, providing you with guidance in managing your SMSF while helping to alleviate your administrative burden.
Your adviser will:
• Help you prepare year-end statements
• Assist in preparing financial documentation
• Advise of any tax liabilities
• Provide tax advice on specific types of investments (NOTE: Your advisor isn’t licensed to provide investment advice)
• Advise on your pension
• Help you lodge tax returns
• Provide access to a trusted auditor to audit your funds—a vital step that ensures you’re able to successfully lodge your tax return each year
Seeking the right advice is the first step in managing your own super fund
There’s a lot of work that goes into managing your own superannuation investments. And with the market knowledge, instinct, financial acumen, and time to do it, it can be a worthwhile avenue towards maximising your superannuation.
So start yourself out on the right foot. AR & B Advisors provide comprehensive advice on maintaining your SMSF and ensuring that it meets all of the compliance obligations, as well as providing advice on the tax effectiveness of superannuation and how it can play a role in your wealth creation. Get in touch with us today to find out how having an SMSF may benefit you—and, importantly, if an SMSF is right for you—and to learn more about how we can help your business grow through strategic business and tax planning.