The purpose of superannuation – no matter how it is housed or invested – is to help you save for your future. This is true for traditional funds as well as self-managed super funds (SMSFs).

So, then, how are they different?

Is SMSF really DIY?

One of the most appealing parts of using an SMSF is that you can have control over your funds and how they are invested.

The reality is that you'll be responsible for operating your fund within the law. If you don't, you may face severe penalties and your fund may suffer tax consequences.

An accountant is the most common solution: they must have an Australian financial services license to advise you about SMSF. Startlingly, however, a June 2018 ASIC review found that 90% of financial advice on SMSFs did not comply with relevant law. Remember, you are accountable for the decisions made about your SMSF and ensuring they are complying with various regulations.

The fees for your adviser can vary significantly and not always be easy to compare, so it’s important that you understand what you are paying and what you are receiving to know how it will influence your balance.

Some SMSF users say it was more work than they expected

An ASIC survey of people who use an SMSF found:

  • 38% of people said it was more time consuming than they expected
  • 32% said it was more expensive than they expected
  • 33% didn’t know the law required an SMSF to have an investment strategy
  • 29% believed that an SMSF had the same level of government protections as regulated industry and retail funds.

Rolling back into an industry superannuation fund

We make it easy to bring your funds back and take advantage of the value of Australian Catholic Superannuation.