An SMSF is simply a private super fund run by its members. It allows you to take direct control of your super investments, rather than entrusting them to a professional fund manager.
Its purpose is to help you and the other fund members save for retirement, then provide an income for you when you retire.
Because an SMSF is a super fund, it is governed by Australia’s super laws, which set out strict compliance and reporting requirements. Those laws also affect the contributions your fund can accept, the kinds of investments you can make, the paperwork you need to keep, and the way you can access your money. Since it is structured as a trust, each fund also has a trust deed that sets out the rules for your individual fund.
An SMSF can have up to four members, and many SMSFs are run jointly by husbands, wives and other family members. But you can also use an SMSF solely for yourself, especially if you have a large amount of super to invest.