What are the main differences between SMSFs and APRA-regulated super funds?

SMSFs operate very differently from regular APRA-regulated (Australian Prudential Regulation Authority) super funds, like CareSuper. 

One of the big differences between an APRA-regulated fund and an SMSF is that they’re overseen by different regulators—APRA-regulated funds (like CareSuper) are regulated by APRA, and SMSFs are regulated by the Australian Taxation Office (ATO). 

Another difference is that SMSFs can only have a maximum of four members, whereas APRA-regulated funds can have millions of members. 

Importantly, with an SMSF, the members are also the trustees. 

That means that if you set up an SMSF, you're in charge. You—not your super fund—are the one making the investment decisions. You’re also responsible for complying with super and tax laws. 

What’s involved in managing your own super?

Setting up and managing an SMSF is a significant commitment. 

To set up an SMSF, you have to: 

• decide on fund members and trustees 
• establish the trust and trust deed 
• set up a bank account 
• register with the ATO 
• create your investment strategy  
• include a plan for when your SMSF ends 

Once you’re set-up, ongoing responsibilities include: 

• roll over your existing super 
• organise employer contributions 
• accept contributions within limits 
• make investments without breaking rules 
• regularly review the investment strategy and 
• document and maintain records for ten years 

Each year, you need to: 

• value assets 
• prepare accounts and financial statements 
• appoint a registered SMSF auditor 
• lodge the annual return 
• pay the SMSF levy and any tax that’s due 

When making super payments, you need to: 

• decide if any assets need to be sold 
• ensure minimum payments are met each year 
• appoint an actuary 
• withhold tax 
• give payment summaries to members and the ATO 

When the fund is finished, you’ll need to: 

• get a final audit 
• lodge your final return 
• pay outstanding tax 
• pay out or roll over all of the assets 

For a more details on winding up an SMSF, visit the ATO website.

Will you do it yourself or pay a professional to help?

Running an SMSF isn’t for the fainthearted, and you need to be confident that you have the time, the skills, and the desire to manage it.  

Of course, you could always engage SMSF professionals to help, but it’s worth bearing in mind that, even if you hire experts, you’re the trustee of the SMSF. Ultimately, if anything goes wrong with your SMSF, you’re responsible and accountable.  

Seek expert advice (not just neighbourly advice)

It’s true, some people have done well out of SMSFs. You’ve probably come across a few passionate folks keen to tell you about their success. 

But just because your neighbour or workmate has made hay with an SMSF, it doesn’t necessarily mean it’s right for you and your situation. Everyone’s retirement needs and goals are different. And everyone has different skills and experience when it comes to managing finances. 

As with all decisions about your financial future, it pays to get expert advice. So if you’re thinking about going down the SMSF path, talk to a professional to make sure it’s right for you. 

Is it flexibility that you’re after? 

If the ability to choose where your super is invested is important to you, you might be surprised to learn that traditional super funds can also offer flexibility. 

When you’re a CareSuper member, you can decide how your super is invested, or leave it to us to take care of it for you. 

We offer a range of different investment options, each with different return targets and levels of investment risk, plus a Direct Investment option which allows you to invest in the S&P/ASX 300, term deposits and ETFs. This variety lets you mix and match your investments to suit your own goals. 

For more information, see our Investment guide. 

Want extra help? 

As a CareSuper member, you can access expert advice tailored to your needs. Whether you need simple help with your super or more complex advice, our team is ready to help. Find out more about your advice options.

For more information on setting up and running an SMSF, head to the ATO website. They have an excellent suite of videos that clearly and simply outline the work involved in managing your own super. 

1 Self-managed super fund (SMSF) - Moneysmart.gov.au – Source: SMSF Investor Report, April 2021, Investment Trends 
This is general information only and doesn’t take into account your objectives, financial situation or needs. Before making a decision about CareSuper, you should consider if this information is right for you.  
We're giving you this information in good faith. It comes from sources we think are reliable and helpful. However, we can't guarantee its accuracy and take no responsibility for this content, including any errors or omissions. 
Advice is provided by one of our financial planners who are Authorised Representatives of Industry Funds Services Limited (IFS). IFS is responsible for any advice given to you by its Authorised Representatives. Industry Fund Services Limited ABN 54 007 016 195 AFSL 232514. 

Information correct as at 3 April 2025.