Answers to Common SMSF Questions, Written for Real Trustees

An SMSF may suit people who want more control over their super, broader investment choice and direct involvement in decision-making. It also brings more responsibility, record keeping and compliance work.

Before you set one up, review the likely costs, your time commitment, your investment knowledge and whether you are comfortable acting as a trustee. You should also compare an SMSF with retail or industry funds before deciding.

Potentially, but residency rules matter. Your fund must continue to satisfy the Australian super fund tests, including establishment in Australia, central management and control ordinarily being in Australia, and the active member requirements.

Where a trustee is overseas for an extended period, tailored advice is important. In some cases, a legal personal representative arrangement may be considered, but this needs to be structured carefully.

Many trustees prefer a corporate trustee because it generally provides cleaner asset ownership, simpler succession when members change, and avoids repeated title changes each time a member is added or removed.

Individual trustees are still allowed, but they can create more administrative friction over time. The choice should be made based on your fund structure, long-term plans and the assets you intend to hold.

Providers commonly ask each member to supply certified identification, such as a passport, birth certificate or driver licence, plus secondary documents where needed. Some rollover providers may request extra identity evidence depending on their own verification requirements.

Most trustees choose a simple fund name based on surnames or initials. The name should be clear, professional and easy to use across banking, legal documents and investment records.

Yes, provided the fund’s trust deed and investment strategy allow it and the acquisition complies with superannuation law. Trustees should document why the investment fits the fund’s objectives, liquidity profile and retirement purpose.

No. Residential property held in an SMSF cannot be used for present-day personal benefit by members or related parties. That means the fund cannot buy a home, holiday house or similar property for members or relatives to use.

In some cases, commercial property may be leased to a related business if the arrangement satisfies the relevant super rules, is properly documented, and is conducted on arm’s length market terms. This should be structured carefully.

Contributions can come from employers, members or other permitted sources, depending on the type of contribution. Current general contribution caps apply and can change over time, so trustees should check the current year’s cap before contributing or salary sacrificing larger amounts.

For 2025–26, the general concessional cap is $30,000 and the general non-concessional cap is $120,000, subject to the usual eligibility rules and broader super balance settings.

Potentially, yes. Where a fund owns eligible property assets, a depreciation schedule may support deductions for eligible building and plant items. Trustees should retain a proper schedule and ensure the treatment is reviewed during annual accounts and tax work.