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What is a SMSF

A self managed superfund (SMSF) is a small superannuation trust that has the primary purpose of providing retirement benefits to the members, where the members themselves act as trustees. This means that the members control and run the superfund.

Self managed superfund operates in much the same way as other types of superfund. The trustees hold the assets of the superfund for the benefit of the members. In a self managed superfund the members, being also the trustees, hold the assets of the superfund. As the members hold the assets, they have complete security, control and flexibility over their superannuation.

The members, being also the trustees, develop the investment strategy, make investment decisions and invest accordingly.

Self managed superfunds can invest in almost any investment products, subject to certain restrictions, commercial and residential property directly, and other more exotic assets.

Generally, a self managed superfund is defined as a superannuation fund where:

Except for single member self managed superfund or a super managed superfund with a corporate trustee.

The most common arrangements for a single member self managed superfund are:

In the case of a self managed superfund with a corporate trustee with more than one member, all members must be directors of the body corporate, and all directors must be members of the self managed superfund.

Almost anyone can set up a self managed superfund.