SMSF Trustee Structures: Should You Choose a Corporate or Individual Trustee?
- My Finance Agent
- 1 day ago
- 3 min read
When setting up a Self-Managed Super Fund (SMSF), one of the very first — and most important — decisions you’ll make is how the SMSF fund will be managed and structured. This means choosing between an individual trustee or a corporate trustee structure.
While both options are legal and widely used in Australia, they differ significantly in cost, flexibility, asset protection, and compliance consequences. Understanding these differences now can save you from major admin headaches — or even costly penalties — in the future.

What Is a Trustee in an SMSF?
An SMSF must have trustees — these are the people (or company) legally responsible for managing the fund and ensuring it complies with superannuation laws. Every member of an SMSF must be either a trustee (if the fund has individual trustees) or a director of a trustee company (if using a corporate structure).
Corporate vs. Individual SMSF Trustee Structures: The Key Differences
Feature | Corporate Trustee | Individual Trustee |
Who is the trustee? | A registered company | Each member of the SMSF |
Minimum members | 1 director (can be a sole member) | 2 trustees minimum |
Setup cost | Higher (ASIC registration fee + ongoing) | Lower |
Ongoing admin | Less admin when members change | More admin–legal titles must be updated if any member leaves or joins |
Asset ownership | Held in the name of the company | Held in the name of each individual |
Ideal for property purchase? | ✅ Yes – preferred by lenders | 🚫 Not recommended |
Compliance penalties | Shared across all directors | Each trustee is fined individually |
Succession planning | Easier to manage | More complex |
💡 Tip: The upfront cost of setting up a company is outweighed by long-term savings in admin, legal changes, and compliance ease.
Corporate Trustees are best for:
Sole-member SMSFs
Families with multiple members
SMSFs planning to purchase property
Funds expecting membership changes over time
Individual Trustees are best for:
Low-activity SMSFs with close-knit members
Investors wanting to minimise setup costs

FAQ: Compliance, Property & Setup
Q: What happens if my SMSF breaks the rules?
A: You will have to pay fines. The penalties depend on which rules are broken and what trustee structure you have.
Corporate Trustee: The penalty (e.g., $4,320) is shared across directors.
Individual Trustee: Each trustee is fined separately. In a four-member fund, that could mean a total fine of $17,280.
💡 This is why many accountants and financial planners recommend a corporate trustee structure — especially for active or multi-member funds.
Q: Can I be the only member in an SMSF?
A: Yes. You can be the only member in an SMSF if you set up a corporate trustee. This is not possible if you choose to set up the individual trustee instead.
Q: What are the next steps after choosing my trustee structure?
Create a Trust Deed — Your SMSF’s legal operating document
Appoint Members — Ensure eligibility and document membership
Nominate Beneficiaries — Decide who receives your super if something happens to you
Open an SMSF Bank Account — In the fund’s name
Register with the ATO — To access tax benefits and ensure compliance
Roll Over or Contribute Funds — Allocate your super balances to the SMSF
Need help with any of this? We work with licensed financial planners who make SMSF setup easy and compliant from day one.
Q: Is a corporate trustee better for property investing in an SMSF?
A: If your SMSF intends to borrow to invest in property, you’ll typically need to:
Use a corporate trustee structure (individual trustee is often rejected by lenders).
Set up a bare trust (aka holding trust), which holds the legal title while the loan is repaid.
📘 Learn more in our bare trust explainer blog
DISCOVER MORE >
✅ Ready to Set Up Your SMSF?
We know setting up an SMSF can sound complex, but it doesn’t have to be. With the right support, the process becomes simple, clear, and completely manageable.
At My Finance Agent, we’ll guide you through every step and connect you with our trusted network of financial planners, legal specialists, and SMSF experts to make sure everything is done the right way.
Call us at (02) 6332-2600 or request a call back
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