SMSF advice built around suitability, responsibility and control
A self-managed super fund (SMSF) can provide greater control over how retirement savings are invested and managed. That control comes with significant legal, administrative and investment responsibilities.
The first question is not whether an SMSF can hold a particular asset. It is whether the structure is appropriate for the members, their retirement objectives, the work they are prepared to undertake and the costs and risks involved.
At Acquira Wealth Partners, we help clients assess an SMSF within the context of their broader superannuation, investment, tax and estate-planning strategy.
What is a self-managed super fund?
An SMSF is a private superannuation fund with up to six members. The members are usually also the individual trustees, or directors of a corporate trustee, and are responsible for running the fund and complying with superannuation and tax law.
Trustees remain responsible even when they engage financial advisers, accountants, administrators, auditors or lawyers. Establishing an SMSF therefore involves accepting an active governance role—not simply choosing a different investment account.
When an SMSF may be worth considering
An SMSF may be considered where members value direct control and have a clear reason for using the structure. Depending on the circumstances, that may include:
- building an investment strategy around the members’ retirement objectives and risk tolerance
- holding direct investments such as listed securities, managed investments, cash or eligible property
- coordinating retirement-income and contribution strategies across members
- integrating superannuation with business succession and estate-planning arrangements
- using a corporate trustee and documented governance process to create greater continuity.
These features do not make an SMSF automatically better than an industry or retail super fund. The value of additional control should be weighed against administration, audit, advice, investment and legal costs, as well as the time and expertise required of trustees.
SMSF borrowing rules from 10 August 2026
SMSFs are generally prohibited from borrowing. A limited recourse borrowing arrangement (LRBA) is a tightly controlled exception, not a general borrowing facility. The acquired asset is held in a separate holding trust and the lender’s recourse is generally limited to that asset.
Residential property borrowing
For LRBAs entered into on or after 10 August 2026, real property can only be financed where it is business real property. In broad terms, business real property is land and buildings used wholly and exclusively in a business, subject to the detailed legislative definition.
This means an SMSF can still acquire residential investment property that is not business real property where the usual superannuation rules are satisfied, but it cannot finance that acquisition through a new LRBA.
The change does not retrospectively end an LRBA entered into before 10 August 2026. Earlier arrangements may generally be maintained or refinanced. Transitional treatment also applies where a binding contract to acquire the property was exchanged before 10 August 2026, even if settlement or the LRBA occurs later. Existing arrangements should be reviewed before any refinancing, variation or change of use.
Business real property
A new LRBA may still be available for business real property. The property must satisfy the definition when the arrangement is entered into and remain business real property throughout the life of the LRBA. A later change in use can create a serious compliance issue, so legal and tax advice should be obtained before committing to a purchase or borrowing structure.
Borrowing to acquire shares
The 2026 real-property restriction did not remove the ability to use an LRBA for other eligible assets. Borrowing to acquire listed shares may still be possible, but the structure is restrictive.
- The borrowing must acquire a single asset, or a collection of identical assets with the same market value that can be treated as one asset.
- Shares in different companies, or different classes of shares in the same company, require separate arrangements.
- An LRBA cannot be used as a general margin-loan facility or to trade and rebalance a portfolio within the holding trust.
- The acquisition must be permitted under superannuation law and consistent with the fund’s investment strategy.
- Loan terms, related-party dealings, liquidity, diversification and the fund’s ability to meet repayments and expenses all require careful review.
The fact that borrowing is legally possible does not make it suitable. Leverage can magnify losses, increase cash-flow pressure and reduce flexibility. Trustees should compare a geared strategy with a diversified, ungeared alternative before proceeding.
Trustee responsibilities
SMSF trustees are responsible for ensuring the fund is maintained for the sole purpose of providing retirement benefits and that its investments comply with the law. Core responsibilities include:
- preparing, implementing and regularly reviewing a documented investment strategy
- considering diversification, liquidity, liabilities and the insurance needs of members
- keeping fund assets separate from personal and business assets
- maintaining records, minutes, valuations and financial statements
- arranging an independent annual audit and lodging the SMSF annual return
- managing contributions, pensions and benefit payments correctly
- reviewing succession, incapacity and death-benefit arrangements.
Trustees should also understand that disputes within an SMSF can be difficult and costly to resolve. The governance structure, trustee appointments, decision-making process and exit arrangements deserve attention from the outset.
Questions to consider before establishing an SMSF
A sound decision begins with the reason for establishing the fund. Useful questions include:
- What can the SMSF achieve that an existing super fund cannot?
- Do the expected benefits justify the ongoing fixed and variable costs?
- Do all prospective members understand and accept their trustee duties?
- Will the investment strategy remain sufficiently diversified and liquid?
- How will the fund operate if a member dies, loses capacity, moves overseas or wants to leave?
- Are borrowing, property or related-party transactions central to the strategy, and have they been independently reviewed?
There is no single balance at which an SMSF becomes suitable. Balance is relevant to cost-effectiveness, but complexity, member circumstances, investment purpose and governance capacity also matter.
How Acquira can help
Our role is to bring structure to the decision and coordinate the advice required. Depending on your needs, this may include:
- comparing an SMSF with other superannuation options
- developing and reviewing the fund’s investment strategy
- planning contributions, retirement income and member cash flow
- reviewing diversification, liquidity, insurance and borrowing risks
- coordinating with specialist accountants, auditors and lawyers
- integrating the fund with your broader investment strategy and estate planning.
If you are considering an SMSF or reviewing an existing fund, contact Acquira Wealth Partners for a considered assessment of the structure, responsibilities and available alternatives.
Official sources
Important information
This information is general in nature and does not take into account your objectives, financial situation or needs. SMSF, tax, borrowing and legal rules are complex and may change. Before establishing an SMSF, entering or changing an LRBA, or acquiring an asset, obtain advice appropriate to your circumstances from suitably qualified financial, tax and legal professionals.
