What the Heck Is a Self-Managed Superfund (SMSF) and Should You Care?

You probably have super. You probably didn’t choose it.

It’s probably got a name like HESTA, REST, Hostplus or something equally vague that sounds like a government-sponsored hotel chain.

And unless you’re the rare unicorn who reads their super statements for fun (respect), your retirement savings are likely sitting in the “default” investment option, growing quietly… probably… hopefully?

But here’s the thing: super is likely to become one of your biggest financial assets over your lifetime (yes, really). So how it’s managed... actually matters.

So, what if you could shake things up a bit and actually use your super in a way that suits you?

What's an SMSF (in plain English)?

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An SMSF is exactly what it sounds like: a super fund you manage yourself, with the help of your accountant – either solo or with up to five others (usually family).

Instead of a big institution deciding where your money goes (and charging you for the privilege), you call the shots on how it’s invested.

Shares? Yep. ETFs? Sure. Property? Absolutely. Vintage Star Wars collectibles? (Technically yes… but please talk to us before going full Darth Vader with your retirement plan.)

Like any super fund, it still has to follow the rules — this is superannuation, not Survivor — but it gives you control, flexibility, and often, better bang for your buck if your balance is big enough. Most people with an SMSF will tell you the extra bit of effort is well worth it.

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Why should you bother?

‍Let's break it down...

✅ The Perks:

• You’re the boss. Invest in what makes sense for your goals (not just the generic stuff a fund manager likes).
• Wider investment options. SMSFs can invest in stuff regular funds can’t — including direct property, business assets, and more.
• Better tax strategies. Done right, SMSFs can unlock some neat tax efficiencies.
• Borrow to Grow. You can use your SMSF to borrow for investments (under strict rules). More assets working for you means your super’s doing double shifts. Think of it as giving your super a little financial protein shake.
• Pool Your Funds. Got a partner or family members? You can combine funds in one SMSF and invest like a bigger fish. More money = more options.

What About the Workload?

• You’re in charge — but not alone. Yes, SMSFs come with responsibilities, but we handle the admin, reporting, and compliance so you don’t have to wrestle with spreadsheets at midnight.‍
• You stay in the loop — we handle the loop. You’ll make the key calls, we’ll take care of the follow-through (and give you the context you need to decide with confidence

A day in the life: SMSF vs. default fund

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Let’s say you and your partner have about $400K in combined super. Right now, it’s chilling in a basic fund. Fees are percentage-based (meaning the more you have the more you pay), you don’t know what your money’s invested in, and the annual report makes about as much sense as a toddler’s shopping list.

Now imagine this:

• You get your accountant to set up an SMSF for you.
• You buy a commercial property that your business rents (hello, double win).
• You diversify the rest in ETFs and quality shares that you actually chose.
• You work with a trusted accountant who handles the technical bits, paperwork and helps you make smart decisions.
• You pay a flat annual fee and you actually know what’s going on with your super.

See? Nothing crazy. Just… intentional.

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Should you look into it?

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It’s not for everyone. That’s kind of the point.

But if you:

• Have $250K+ in super
• Like the idea of using your super to do more than just “sit there and grow-ish”
• Want more say (and maybe more strategy)

Then yeah, it’s probably worth a conversation.

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Final word

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We’re not here to convince anyone that an SMSF is the answer. They’re not for everyone, and there are rules, responsibilities, and plenty of fine print. What we can do is help you understand how they work and point you in the right direction.

If you’d like to know more, get in touch with the team.

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– The team at PAL (making accounting slightly less boring since way back when)

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Disclaimer: This article is here to give you general info only, not professional advice specific to your unique situation. While efforts are made to ensure accuracy, the content may change over time. We can’t take responsibility for any decisions based on the contents of this article, so be sure to chat with your accountant or advisor first!

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