What You're Actually Signing Up For
SMSF Roles &
Responsibilities
The Honest Truth About Running an SMSF
Setting up an SMSF is easy. Making sure it's the right decision is the hard part.
Before you proceed, you need to understand exactly what being an SMSF trustee means; the time commitment, the legal responsibilities, the compliance requirements, and what MALEX can and cannot do for you.
This page breaks it down without the jargon or the sales pitch.
What You Need to Understand
Your Role as Trustee
When you establish an SMSF, you become a trustee. That's not just a title, it's a legal role with serious responsibilities.
1. Decision-Maker: Control is the benefit. Responsibility is the cost.
- You choose the investment strategy (property, shares, cash, etc.)
- You approve all major decisions (property purchases, asset sales, contributions)
- You control when and how money moves in and out of the fund
2. Compliance Oversight
The ATO holds YOU accountable. "My accountant didn't tell me" is not an excuse the ATO accepts… unfortunately. This is why it's critical to work with someone who educates you, not just transacts with you.
- You ensure the fund stays compliant with ATO rules (sole purpose test, related party restrictions, arm's length terms)
- You review and sign off on annual tax returns and audits
- You document all trustee decisions in meeting minutes
- You keep records for 10 years (or longer in some cases)
3. Annual Reviews
This is mandatory—missing a deadline could put you in breach.
- Review and update the investment strategy every year (or when circumstances change)
- Sign off on annual financial statements
- Approve the independent audit report
- Lodge the SMSF annual return with the ATO
4. Record-Keeping
If you don't document it, you didn't do it (as far as the ATO is concerned).
- Trustee meeting minutes (every time you make a decision)
- Property purchase/sale contracts and valuations
- LRBA loan documents and repayment schedules
- Rental income and expense records
- Bank statements and transaction records
Time Commitment: Be Realistic
If you're not willing to commit 2-4 hours per year to review compliance documents, an SMSF is not for you.
Upfront Setup: 5-10 hours
- Understanding the process and your responsibilities
- Reviewing and signing trust deeds, declarations, and investment strategy
- Setting up bank accounts and completing rollovers
- Trustee meetings and decision documentation
Yearly Ongoing: 2-4 hours per year
- Reviewing annual financial statements and audit reports
- Signing off on tax returns
- Updating investment strategy (if needed)
- Annual trustee meeting minutes
Buying Property: 20-25 hours
- Property search and selection
- Inspections and Weekend Travel
- LRBA loan application and approval
- Settlement and handover
Managing Property: Add 1-2 hours per year
- Selecting and appointing a property manager
- Approving maintenance and repairs
- Reviewing rental income and expense reports
- Property-related trustee decisions
Annual Costs: Fixed, Not Percentage-Based
SMSF Administration: $2,500-$4,000/year
Corporate Trustee set up
$2,000-$3,000
Bare Trust (required to borrow)
$1,000-$2,000
Tax return preparation
$600-$800
Financial statements
$400-$600
Annual audit (independent auditor)
$400-$600
ASIC annual review fee
$310
Bookkeeping and compliance
$500-$700
If You Have Property: Add $500-$1,000/year
Property management
~7-8% of rental income
LRBA loan administration
$300-$500
Total (depending on complexity)
$2,500-$4,000/year
For Comparison: Industry Fund Costs
- Industry super fund fees: 0.8-1.5% of balance annually
- On $300K balance at 1% = $3,000/year (and grows as your balance grows)
- On $1M balance at 1% = $10,000/year
Key Difference: SMSF costs are fixed. Industry fund fees compound against you as your wealth grows.
IMPORTANT NOTICE
Fixed expenses are always "expensive" in proportion to your return on investment and relative to your assumed risk. What this means:
- If your SMSF balance is $100K and you're paying $3,000/year in fixed costs, that's 3% of your balance annually—before any investment returns. You'd need 3%+ returns just to break even on admin costs.
- If your SMSF balance is $500K and you're paying $3,000/year in fixed costs, that's 0.6% of your balance. Much more reasonable, and easier to justify if your returns exceed this.
- Fixed costs become cheaper as your balance grows, unlike percentage-based fees (industry funds) which compound against you as your wealth increases.
- Property leverage changes the equation entirely. A $300K balance controlling a $1.2M property means your fixed costs ($3K-$4K/year) are only 0.25-0.33% of the asset you're controlling.
- Risk matters. If you're investing $300K in high-risk, illiquid assets (e.g., a single property in a mining town), fixed costs are "expensive" because your risk-adjusted returns may not justify them. But $300K in a diversified, investment-grade property portfolio with 7%+ growth? Fixed costs are cheap.
- The time horizon matters. Over 10-15 years, $3,000/year in fixed costs totals ~$30K-$45K. Compare that to percentage-based fees on a growing balance (e.g., 1% on $1M = $10K/year, compounding). The longer you hold, the better fixed costs look.
What MALEX Handles
We handle the execution and compliance, but you remain the decision-maker.
During Setup
Weeks 1-5- Trust deed preparation and execution
- Corporate trustee registration (ASIC)
- ABN and TFN registration with ATO
- Bank account setup and coordination
- Rollover assistance from existing super funds
- Investment strategy preparation
- Initial compliance documentation
Ongoing
Year 1+- Annual financial statements preparation
- SMSF annual return (SAR) lodgement with ATO
- ASIC annual review fee payment
- Independent SMSF audit coordination
- Trustee resolution and minutes templates
- Compliance record-keeping and documentation
- ATO correspondence and lodgments
- Plain-English compliance updates when rules change
If You Buy Property
Additional Services- LRBA structure setup and documentation
- Property transaction compliance review
- Loan administration coordination
- Property-related tax treatment
- Rental income and expense tracking
What We Don't Handle
You're in control. We provide the framework, execution, and coordination—but all major decisions remain with you as the trustee.
We execute. You decide.
Your Investment Decisions
- Investment strategy (property, shares, cash allocation)
- Which property to buy (we provide options and analysis, you choose)
- When to sell or refinance
- Rental pricing and tenant selection (with property manager recommendations)
- Annual strategy updates and changes