Is an SMSF Right for Everyone? What the Super Fund Call Centre Scandal Really Tells Us A new mystery-shopping study has just exposed how badly Australia’s biggest super funds treat members on the phone. For anyone frustrated with their fund, the obvious next question is whether a Self-Managed Super Fund (SMSF) is the answer. It […]
Is an SMSF Right for Everyone? What the Super Fund Call Centre Scandal Really Tells Us
A new mystery-shopping study has just exposed how badly Australia’s biggest super funds treat members on the phone. For anyone frustrated with their fund, the obvious next question is whether a Self-Managed Super Fund (SMSF) is the answer. It is a fair question. But it is not a simple one
When Your Fund Won’t Pick Up the Phone
Super Consumers Australia partnered with Customer Service Benchmarking Australia to mystery-shop 1,000 calls across 20 major super fund call centres. The results were bleak. The average customer experience score was just 49.9%. No fund scored above 55%, and none reached the 80% “green zone” that counts as genuinely good service.
Some funds performed far worse than the average. Australian Super, the country’s largest fund, failed to answer 90% of calls placed to it during the study. Team Super, connected only 52% of calls. Both were excluded from the overall rankings because their answer rates were too poor to assess fairly. Among the remaining funds, 23% of prospective customers were simply told to “go online” instead of receiving help.
The empathy findings were harder to read. In 58% of calls made on behalf of someone with limited English, funds shifted responsibility back onto the caller. They did not help the member directly. Seventy per cent of calls from vulnerable customers scored five or below out of ten for empathy. Individual call scores ranged from as low as 20% to as high as 86% at the very same organisation. That tells you service quality is often a lottery, not a standard.
Super Consumers Australia CEO Xavier O’Halloran did not mince words. “People don’t just need a healthy super balance to have a dignified retirement,” he said. “They need to know their fund will pick up the phone when they’re grieving, need to access their money, or ask a simple question, and actually help them.” O’Halloran also had a clear warning for the sector. “Superannuation is mandatory, but good customer service is not,” he said. “That has to change.”
The Appeal of Taking Control
It is easy to see why stories like this push people toward an SMSF. Control is consistently the number one reason members give for setting one up, according to ASIC’s own research into SMSF member experiences. When your current fund cannot answer the phone, running your own fund starts to look appealing. At least then you would know exactly who is responsible.
That instinct is understandable. But control is a trade, not a gift. You gain direct oversight of your super. In exchange, you take on every duty your fund’s staff currently perform for you. If something goes wrong, you become personally liable.
An SMSF Is Not a Simple Switch
The Australian Taxation Office has been unusually blunt about this trade-off. In a warning issued earlier this year, the ATO urged people to “stop and ask why” before setting up or rolling over into an SMSF. It flagged crypto and property as common bait used by unlicensed advisers and high-pressure sales tactics. The regulator’s suggested questions are worth asking yourself directly. Why am I being encouraged to do this? Do I actually understand what managing an SMSF involves? Is the person advising me properly registered? Have I checked this with someone independent?
ASIC has its own long-standing list of “red flags” that suggest an SMSF is unlikely to suit someone. A fund is generally a poor fit if you:
– Have a low balance with limited ability to add to it
– Want a simple, hands-off solution
– Want to delegate all running of the fund to a paid adviser
– Want someone else to make every investment decision
– Lack time to devote to your financial affairs
– Have little investment experience
– Have a low level of financial literacy
None of these are moral judgements. They are practical signals that the workload of running a fund will outweigh the benefit of controlling it.
ASIC’s most recent review of SMSF establishment advice, REP 824, reinforces the same point. It expects that anyone recommended to set up an SMSF has “the time, skills, general interest and experience to meet their trustee responsibilities.” They also need to genuinely understand the benefits, risks and costs before committing.
Who an SMSF Actually Suits
This is where our own view comes in, shaped by years of setting up and running SMSFs for clients.
“My SMSF believes it suits small business owners and people in the financial, IT and medical and legal fields most”. There is a lot of responsibility for the ownership and control trade-off.”
That view is backed by the data. Nearly 39% of SMSF members are self-employed or derive their income from a business or partnership, according to Treasury’s statistical summary of self-managed superannuation funds. Half of all SMSFs have at least one member who fits that description. Separate industry research from Investment Trends and IFSA found 38% of working SMSF members describe themselves as business owners or self-employed. Professionals such as accountants, doctors and lawyers make up a further slice.
There is a good reason these groups turn up so often. Business owners already carry legal and financial responsibility for an entity of their own. Taking on trustee duties is a familiar extension, not a new skill. People in finance, IT, medicine and law tend to have higher financial literacy. They are also more comfortable with compliance obligations and often have more flexible schedules for fund administration. The Productivity Commission has noted ( that 81% of SMSF trustees hold a tertiary qualification. That lines up neatly with the professions we see most often at setup.
Who tends to do well as an SMSF trustee | Why
- Small business owners | Already used to compliance, record-keeping and personal liability
- Financial services professionals | Understand investment strategy, risk and reporting obligations
- IT professionals | Comfortable with the administrative and technical systems SMSFs rely on
- Medical and legal professionals | Higher financial literacy, disciplined about documentation and deadlines
Anyone wanting simple, low-cost, hands-off super | Better served by an industry or retail fund
The Real Costs of Control
Running an SMSF is not free, and it is rarely as cheap as people expect. ASIC has long pointed to $200,000 as the rough balance at which an SMSF starts to compete with an APRA-regulated fund on cost. That figure comes from research it commissioned from [Rice Warner]. ASIC’s current guidance, INFO 274, no longer treats that figure as a hard rule. There is no legislated minimum balance at all. Starting balance is simply one factor among many, alongside costs, trustee capability and time commitment. Even so, the costs are real and worth setting out plainly.
| Cost Category | Amount / Range | Source |
|---|---|---|
| Annual compliance costs | $1,189–$2,738 | SMSF Association-commissioned research (via Canstar) |
| Annual administration fees | $1,514–$3,359 | SMSF Association-commissioned research (via Canstar) |
| Average operating cost per fund | Around $6,152 | Taylor Advisory |
| Full cost (including trustee’s own time at national minimum wage) | Around $15,667 per year | Deakin University |
| Ongoing hands-on administration | 5–8 hours per month (moderately active fund) | Elite Wealth Creators |
| Practical balance where costs become cost-effective | $200,000–$300,000 | ASIC / Super Informed |
None of that time or money is optional. Each year, trustees must:
– Value all fund assets at market value
– Prepare financial statements
– Appoint an independent, ASIC-registered auditor
– Lodge the annual return on time
– Keep records of every trustee decision
These duties come straight from the [ATO’s trustee obligations], page. If you appoint an accountant or administrator to help, the legal responsibility still sits with you, even when a tax return is lodged, the administrator has relied on your figures and documents in preparing a tax return and audit and when you sign off on a tax return, you bare responsibility for your investment and administrative actions.
Questions to Ask Before You Switch
Before leaving an APRA-regulated fund, it is worth working through the same checklist we use with new clients.
| Question | Why it matters |
|---|---|
| Do I have the time to spend several hours a month on my fund? | Fund administration does not run itself, even with professional help. |
| Do I understand my legal obligations as a trustee? | You remain personally accountable for compliance, even if you outsource tasks. |
| Is my balance large enough to make the costs worthwhile? | Fixed costs consume a greater proportion of smaller balances. |
| Am I being pushed toward crypto or property by someone unlicensed? | This is exactly the type of arrangement the ATO has warned about. |
| Would I rather delegate everything to someone else? | That may indicate an SMSF is not the right structure for your needs. |
| Is my real problem service quality, not structure? | Switching to another APRA-regulated super fund may solve the same frustrations with far less responsibility. |
What This Means for You
| Your Situation | An SMSF Is Likely a Good Fit | An SMSF Is Likely Not the Right Move |
|---|---|---|
| Balance | $200,000 or more, with room to grow | Low balance with limited future contributions |
| Time | Comfortable committing several hours each month | Little time or interest in ongoing administration |
| Background | Business owner, or working in finance, IT, medicine, or law | Prefer a fully hands-off, delegate-everything approach |
| Motivation | Want direct control over specific assets, such as property or a tailored investment strategy | Frustrated with service and simply want a quicker fix |
| Support | Willing to work closely with an accountant and auditor, while remaining an engaged trustee | Want someone else to make every investment and compliance decision for you |
Final Thoughts
The Super Consumers Australia study is a fair reminder that many large funds still have work to do on basic service. But poor service is a reason to complain, compare, or switch funds. On its own, it is not a reason to take on the legal and financial responsibilities of trusteeship. An SMSF suits people who want that responsibility and have the background to carry it well. That is why small business owners and professionals in finance, IT, medicine and law do it most successfully. For everyone else, a better-run APRA fund may solve the same problem with far less effort. If you are weighing up whether an SMSF genuinely fits your circumstances, our team can talk you through what setup, running costs and ongoing obligations would look like for you. Have a look at why people set up an SMSF with us to see if it fits your situation.
*Disclaimer:
This article is general information only and does not constitute financial, tax or legal advice. It does not take into account your personal objectives, financial situation or needs. Before making any decision about superannuation, including establishing or switching to an SMSF, seek advice from a licensed financial adviser or registered tax agent. They can consider your individual circumstances properly.*
