It depends on three things: your balance (generally $500K+ to make the costs work), whether you have a specific reason (commercial property, direct shares, business premises, succession planning), and whether you can carry the trustee duties. For most Australians, a quality industry fund is simpler and cheaper. We benchmark both before recommending either way.

Setup is typically $2,000-$3,500 (corporate trustee included). Annual running costs sit around $3,000-$5,500 depending on complexity (audit, accounting, ASIC, ATO, advice). On a $500K balance that's roughly 0.7-1.1%, competitive with retail funds, more expensive than the cheapest industry funds. Below ~$300K, the math rarely works.

Yes, both residential and commercial. Strict rules apply: arm's-length terms, no related-party residential rentals, the property must meet the 'sole purpose' test, and any borrowing must be via a Limited Recourse Borrowing Arrangement (LRBA). Commercial property bought from your own business (business real property) is one of the most common SMSF strategies.

Yes, via a Limited Recourse Borrowing Arrangement (LRBA). It's the only way an SMSF can use gearing, and the structure is strict: the borrowed asset is held in a separate bare trust, the lender's recourse is limited to that one asset. Banks have tightened SMSF lending criteria since 2018, so funding isn't always available.

The ATO can apply administrative penalties, disqualify trustees, or in serious cases tax the fund at the top marginal rate (45%+) instead of the concessional 15%. The annual audit catches most issues early. Working with an adviser materially reduces the risk of an avoidable breach.

ASIC's guidance suggests $500K+ as a rough threshold; below that, fixed running costs eat too much of the balance. There are exceptions (specific strategies that justify smaller balances, or couples pooling) but the default position should be: under $500K, default to a quality industry fund unless the strategy genuinely requires an SMSF.

Yes, via a rollover. There's some paperwork (rollover request form, electronic service address, USI confirmation) and timing matters. You usually want the SMSF fully established before triggering the rollover. Insurance held inside your industry fund typically doesn't transfer, so we plan that gap before pulling the trigger.

Yes. SMSFs can hold ASX-listed shares, international shares, ETFs, managed funds, and term deposits. The investment strategy must be documented and reviewed annually, and you need to be able to demonstrate the investments meet the sole purpose test. Direct equity is one of the most common reasons people choose an SMSF.

Two structures: individual trustees (each member is also a trustee) or corporate trustee (a company acts as trustee, members are directors). Corporate trustee is more common because it simplifies asset ownership, succession, and adding/removing members. Anyone over 18, not bankrupt, and not previously disqualified by the ATO can be a trustee or director.

On retirement, the fund moves into pension phase (income tax-free under $1.9M transfer balance cap as at 2025-26). On death, the fund pays out per your binding death benefit nomination (or the trustee's discretion if you haven't made one). SMSFs give you tighter control over both than most retail options, but only if the documents are right.