Understanding SMSF Structures: Trustee, Fund and Trust Deed

Behind every self-managed super fund (SMSF) is a simple but powerful structure – the trustees, the fund, and the trust deed. Together, they form the framework that defines how your fund operates, who controls it, and how decisions are made.

If you’re new to managing your own SMSF, understanding this structure is one of the most important steps you can take. Once you know how each piece fits together, the compliance side becomes much easier to manage.

1. The core components of an SMSF

At its heart, an SMSF is built around three key elements:

• Trustees: the people (or company) responsible for running the fund.

• Members: the people who benefit from the fund (usually the same individuals as the trustees).

• The trust deed: the legal document that sets the rules for how the fund operates.

These elements must work together correctly for the fund to stay compliant. Here’s how each one functions in practice.

Members and trustees

Every SMSF can have up to six members. Each member must also act as a trustee (if the fund has individual trustees) or as a director of the corporate trustee (if the fund uses a company).

That dual role – being both a member and a trustee – is what gives SMSFs their unique level of control. But it also means trustees are legally responsible for ensuring the fund meets all ATO and Superannuation Industry (Supervision) Act requirements.

For new trustees, the ATO’s Setting up your SMSF guide provides a clear overview of these obligations.

Individual vs corporate trustees

When setting up your SMSF, one of the first decisions you’ll make is whether to have individual trustees or a corporate trustee. Both options are common, the right choice depends on how you want to structure control and succession within the fund.

Here’s a simple comparison:

Feature	Individual Trustees	Corporate Trustee
Structure	Each member is a trustee.	A company acts as the trustee, and each member is a director of that company.
Setup & cost	Lower setup cost, as no company registration is required.	Higher setup cost due to ASIC registration and ongoing company fees.
Ownership of assets	Fund assets are held in the names of all trustees.	Assets are held in the name of the corporate trustee.
Administration	Changes (e.g., adding/removing members) require re-titling of assets.	Easier to manage membership changes – only company records are updated.
Succession	If a trustee passes away, asset ownership changes are required.	The company continues, offering smoother control transitions.
Compliance focus	Must meet all trustee obligations as individuals.	Must meet both trustee and company director obligations.

Example:

If you and your partner run a two-member SMSF, you could either:

• List both your names as individual trustees (simpler to set up), or

• Establish a company that acts as the fund’s trustee, with both of you as directors.

Both options are valid – what matters is that the structure matches your fund’s long-term needs and is documented correctly from the start.

2. The SMSF trust deed explained

If the SMSF is the body, the trust deed is its rulebook. It outlines exactly how the fund operates, from admitting members to paying benefits, and it must comply with Australian superannuation laws.

Every SMSF is legally required to have a trust deed. This document outlines:

• How the fund is established and who its members are.

• The powers and duties of the trustees.

• How contributions, investments, and benefits are managed.

• How benefits can be paid (such as pensions or lump sums).

• What happens if the fund winds up.

Why is an SMSF trust deed important?

Your trust deed is the ultimate reference point for any decision you make as a trustee. If the deed doesn’t support a rule or action, it may not be valid.

Updating your SMSF trust deed

Superannuation laws and ATO requirements are subject to change over time. For your fund to remain compliant, your deed needs to reflect these updates.

Trustees can usually update the deed following the process it sets out – typically through a deed of variation. However, any update must:

• Be consistent with the fund’s existing rules, and

• Be executed correctly to remain legally valid.

For significant updates, many trustees choose to have a legal or SMSF professional prepare or review the documentation to ensure it aligns with compliance standards.

If you’re unsure when your deed was last reviewed, EOFY is a good time to check.

3. How structure affects administration

Getting the structure right from the beginning makes every part of SMSF management smoother, from setting up your bank account to lodging your annual return.

Here’s how structure impacts day-to-day administration:

• Ownership and record keeping

All fund assets must be registered in the name of the trustee(s). If the details are incorrect or incomplete, it can cause problems during audits or property transfers.

• Decision making and documentation

Trustees are required to record every major fund decision in meeting minutes – including updates to the trust deed, membership changes, or strategy reviews.

• Compliance and audits

A clear structure and up-to-date documentation make it easier for auditors to confirm that the fund is operating correctly. It also helps the ATO verify ownership and control of assets if needed.

• Succession planning

The trustee structure determines how control of the fund is transferred if a member passes away or retires. Corporate trustees tend to make this process simpler because the company continues even if individual members change.

Andromedae supports trustees with all these structural elements, from reviewing existing documentation to ensuring your trust deed, trustee records, and fund details are always current.

Building confidence through clarity

When you understand how your SMSF’s structure fits together, managing compliance becomes much less daunting. The key is keeping your documentation current, your trustee roles clear, and your records accurate.

Whether you’re setting up a new SMSF or reviewing an existing one, Andromedae can help you stay on top of the paperwork and compliance requirements. Get in touch with us today to find out more.

Disclaimer: Andromedae and its staff do not provide financial advice on whether an SMSF is right for you. We also do not provide advice on what investments your SMSF should undertake. Our role is to manage the administration and compliance of your SMSF. Please seek advice from your own financial professionals to determine what is best for your personal circumstances. All content in this blog is provided as general information only.