Like other superannuation (super) funds, self-managed super funds (SMSFs) are a way of saving for your retirement. The main difference is that SMSF is run by you, for you and any other members of your SMSF. It is simply a form of trust designed to provide retirement or death benefits for its members, with those members being the beneficiaries. Generally, the members of an SMSF are also the trustees.
Trustees are legally responsible for all decisions concerning the SMSF fund. Part of your responsibility as trustee is to ensure that you understand the rules governing your fund and to keep abreast of any legislative changes. Penalties for mismanaging a SMSF fund or compliance breach are high. If the fund is found to be non-complying, a highest marginal tax rate is potentially payable on all income or other gains and on the assets of the fund in the first year of non-compliance.
It is important to get a professional advice from an accountant to meet all legal and compliance requirements and more importantly to set up a proper plan for your retirement.