Is an SMSF right for you?

This information is general in nature and does not take into account your objectives, financial situation or needs. Consider whether it is appropriate for you.”

Setting up an SMSF is a significant decision. It gives you full control over how your retirement savings are invested, but it comes with real responsibilities and ongoing costs. Before you commit, it’s worth slowing down and asking whether an SMSF actually fits your situation. An SMSF is a powerful tool, but it’s not a one-size-fits-all approach.

Why are more Australians choosing SMSFs?

Markets have transformed over the last few years. Since COVID, retail investors have gained access to better tools, deeper education, and global markets that used to be the preserve of professionals. Commission-free investing, fractional shares, real-time data, and the rise of AI-driven research have lowered the barrier to entry dramatically. Investors who once relied entirely on a fund manager now have the resources to make informed decisions themselves. Beyond that, there are also other real benefits for why Aussies are choosing SMSFs.

Investment control and agility. You can invest across direct shares, ETFs, property, bonds, and crypto, time purchases and sales for strategic tax planning. SMSFs also give members direct control over the fund’s investments. Instead of being limited to a fund manager’s preset options, trustees can build a diversified portfolio aligned with their long-term goals.

Tax flexibility. Earnings are taxed at 15% in accumulation and 0% in pension phase (up to a Transfer Balance Cap of A$2 million per person for 2025-26). That’s the same structure as a retail super, but SMSFs let you use that structure strategically. Trustees can split concessional contributions between spouses, make catch-up contributions if their balance is under $500,000, segregate assets between accumulation and pension phases, and use franking credits from share dividends.

Transparency and cost benefits at scale. You see every dollar, every trade, every fee. And because SMSF admin costs are largely fixed (unlike the percentage-of-assets model of retail funds), they become more cost-effective as your balance grows. Generally, SMSFs become competitive above roughly $200,000 in combined member balances.

Family and estate planning. Up to six members means families can pool super into a single fund, reducing per-member costs and enabling investment in larger assets. SMSFs also give you significantly more control over how benefits are paid on death, with binding death benefit nominations that typically don’t expire.

The other side of the coin: What it takes to run an SMSF

If the conversation stopped at the benefits, every Australian would have an SMSF. They don’t, because running one comes with real responsibilities.

As a trustee, you’re legally responsible for the fund. That means complying with super and tax law (which changes regularly), maintaining proper records, lodging an annual return, arranging an independent audit each year, and running the fund strictly for retirement purposes.

Most trustees work with an accountant, administrator, and auditor to handle the heavy lifting, but the legal responsibility sits with you. There’s also a time commitment: even with good professional support, you should expect to review your strategy and stay engaged with your investments each year. If “set and forget” is what you want from super, an SMSF probably isn’t the right fit.

The checklist: Is an SMSF right for you?

Consider these three sets of questions, worth answering honestly before you make any decisions.

Balance and cost

Is your combined super balance growing toward, or already above, the level where an SMSF becomes cost-effective? The industry generally points to around $200,000.
Are the setup and ongoing admin costs justified by the control and flexibility on offer? (Intello charges eToro clients a $990 setup fee. Annual administration via the Plus plan is $3,300, discounted for eToro Club members – 12% off for Silver and above ($2,940), or 20% off for Platinum Plus and Diamond ($2,640). On top of that, all SMSF trustees pay the ATO supervisory levy (~$259/year), which applies regardless of provider.)

Engagement and investment intent

Do you actively want to be involved in investment decisions, or are you looking for “set and forget”?
How long have you been investing for? You set your own strategy and pick your own assets, so prior experience navigating the ups and downs of markets is important. Without prior investing experience, it’s a steep learning curve to climb with your retirement.
Do you have specific investment goals (Australian and international shares, ETFs, crypto, property) that your current super fund can’t accommodate?
Could you benefit from tax planning your current fund doesn’t support, like contribution splitting, franking credit strategies, or asset timing?

Responsibilities and support

Are you willing to take legal responsibility as a trustee?
Will you commit the time to review your strategy and stay engaged, even with professional administrators in place?
Do you have, or are you willing to engage, the right professional support?

If you answered yes to most of these, an SMSF may deserve serious consideration. If you answered no to several, particularly around balance, engagement, or trustee responsibilities, you may be better served staying in a retail or industry fund for now.

How to set up an SMSF with eToro

If you’ve worked through the checklist and an SMSF feels right, the next question is what platform you’ll use to invest. eToro is Australia’s all-in-one investing platform, giving SMSF trustees access to 400+ Australian stocks and ETFs, 10,000+ global stocks, ETFs, crypto and more across 20+ global exchanges, all in one account.

How to choose a SMSF administrator

If you’re setting up SMSF, you may be wondering what is a good SMSF administrator. At eToro we’re partnered with Intello, one of Australia’s leading SMSF administrators, to offer eToro clients a discounted setup fee of AUD$990 and up to 20% off ongoing administration and accounting fees based on your eToro Club tier.

Next steps for your SMSF investment strategy

If you’re seriously considering an SMSF, one of the most valuable things you can do is talk to a professional before committing. Structuring the fund correctly from day one is what saves you time, tax, and stress down the track.

Already have an SMSF? Eligible SMSF clients can earn up to USD$30,000 cashback on net deposits (new customers only; a minimum USD$10,000 deposit is required to open an eToro SMSF account, with terms and conditions applying).

Book a call with the team to discuss the next steps of taking control of your retirement.

Don’t have an SMSF yet? eToro has partnered with Intello, one of Australia’s leading SMSF administrators, to offer eToro clients a discounted setup fee of A$990 and up to 20% of administration and account fees based on your eToro Club tier.

This guide has been put together with insights from Intello.com.au

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