Managing your own super suits some people.
For others, the cost, time, and responsibility is more than they expected. Before deciding which suits you and your circumstances, it's worth taking a closer look at both sides: what running your own SMSF involves, and what you already get from a professionally managed fund like Aware Super.
Depending on how your finances are set up and what you’re invested in, there are positives and negatives to running your own self managed super fund.
| Pros | Cons |
|---|---|
You’re in control As an SMSF trustee, you’re in complete control of your investment strategy. Not only do you decide what to invest in, you can also choose when to sell. Fees With a flat fee, SMSFs can be a good option if you have a large portfolio of assets. Tax rates With an SMSF, you get the same tax rate as a super fund – 15% on investment returns. Your SMSF has to be compliant in order to receive this tax rate. Investments An SMSF could be right for you if you have a property investment portfolio. You can also invest in more obscure assets like artwork, rare coins and stamps, and gold and silver bullion. Estate planning SMSFs offer options and flexibility when it comes to estate planning. | Time, knowledge, responsibilities Running an SMSF can take time and a high-level of financial knowledge, or the help of a financial adviser. SMSF trustees spend over 100 hours a year managing their fund, on average.# You’re also responsible for all the decisions of the fund. That means if your investments do badly, it falls on you. Costs If you have a smaller financial base, fixed fees for a SMSF usually take a bigger chunk out of your retirement savings. Residency requirements Certain residency requirements are required for an SMSF to remain compliant. Professional advice is recommended to ensure these conditions are met. Insurance premiums With an SMSF, you’re likely to pay higher insurance premiums as you don’t have the bargaining power of a large super fund.
|
There’s no single right answer to that question. A few honest answers to the following questions can help you see which way you're leaning:
Do you have enough super so that the fixed costs of an SMSF make sense?
Do you have the time to run a fund through the year, or the budget to pay someone and still stay accountable?
Are you comfortable being legally responsible as a trustee?
If you're unsure on any of these, you may want to talk it through with an independent financial adviser before you act, not after.
It's also worth slowing down if:
Your main reason is to buy property.
You are relying entirely on someone else to run the SMSF.
You are unsure of your responsibilities as a trustee.
You have not compared the costs of staying in your current fund.
This example is for illustrative purposes only and is not a guarantee of future outcomes.
This example is for illustrative purposes only and is not a guarantee of future outcomes.
You can wind up an SMSF and move your super back to a professionally managed fund like Aware Super later. It can be a complex process and needs to be completed by the person who initially set up account, so it’s worth knowing that path exists before you start. Learn how to wind up an SMSF.
Whether to set up, keep, or move away from an SMSF is a personal decision, so its worth getting advice suited to your circumstances. As an Aware Super member, you can book a Super Helpful Check in with one of our super experts at no extra cost.[AD2]
[AD2] Members can get advice about their Aware Super accounts at no extra cost, or advice on their broader needs for a fee.
# Moneysmart research, 2026. Source: https://moneysmart.gov.au/how-super-works/self-managed-super-fund-smsf
^ Example is based on an average Aware member aged 45 with a $167,000 balance, earning $120,000 p.a., retiring at age 67 and receiving 12% SG. Results are shown in today's dollars (deflated using AWOTE 3.7% p.a.) and rounded to the nearest $100. Aware fees are assumed to be 0.15% p.a. (capped at $750 p.a.) plus a $52 annual fee, while SMSF fees are assumed to be 1.3% p.a. based on ATO data for funds between $200,000 and $500,000. Aware investment returns are based on the MySuper Life Cycle option. SMSF returns are based on ATO asset allocation data and corresponding Aware asset-class return assumptions. Returns are net of tax. CPI is assumed to be 2.5% p.a. No insurance, LISTO or Government Co-Contributions are included.
This example is for illustrative purposes only and is not a guarantee of future outcomes. Results are based on current laws and tax rates as at 1 July 2026 and may change. Actual investment returns may differ, including being negative, and higher or lower returns and inflation will affect final balances. Consider if this is right for you and read the PDS and TMD before making a decision about Aware.
^^ Example is based on an average Aware member aged 45 with a $167,000 balance, earning $120,000 p.a., retiring at age 67 and receiving 12% SG. Results are rounded to the nearest $100 and shown in today's dollars (AWOTE 3.7% p.a.). Scenarios assume that 100% of SG contributions are paid into the member's SMSF account. Aware fees are assumed to be 0.15% p.a. (capped at $750 p.a.) plus a $52 annual fee, while SMSF fees are assumed to be 1.3% p.a. based on ATO data for funds with balances between $200,000 and $500,000. Aware and SMSF investment returns are based on long-term assumptions and are net of tax. CPI is assumed to be 2.5% p.a. No insurance, LISTO or Government Co-Contributions are included.
This example is for illustrative purposes only and is not a guarantee of future outcomes. Results are based on current laws and tax rates as at 1 July 2026 and may change. Actual investment returns may differ from assumptions, including being negative, and final balances will vary. Consider if this is right for you and read the PDS and TMD before making a decision about Aware.
