Do All Doctors Need A SMSF?

As you would know, employers are obligated to contribute a set percentage of an employee’s salary to a chosen super fund. You have a choice to decide if you would like these funds invested in a retail fund, an industry fund, or perhaps even a Self-Managed Super Funds (SMSF).

SMSFs are traditionally for individuals who wish to be more involved with their wealth management strategies. They may be complex to manage, but for doctors and other medical professionals with multiple assets or income streams, it can be worth the additional effort.

Advantages of a SMSF:

  • 1. Cost Benefits

Many medical professionals, as high-income earners, utilise a SMSF for the cost savings. Once established, the annual costs and fees associated can be much smaller compared to a retail or industry superannuation option.

  • 2. Purchase Property and Medical Rooms

A real game-changer for SMSF compared to retail or industry funds is their ability to use super funds to purchase property. Medical professionals have the option of using a SMSF to purchase consulting rooms or business premises through the super fund, which can provide considerable tax benefits when structured in correctly.

  • 3. Additional Members – Asset Consolidation

By combining multiple members into the fund, you can essentially combine the funds which opens up additional opportunities to invest.

  • 4. Ability to borrow funds

Although lenders have recently shied away from lending to SMSF, there are still some institutions that will allow a SMSF to borrow funds to invest in property assets. The ability to leverage brings additional risks, however there is a potential to increase your wealth at a much faster rate.

Disadvantages of a SMSF:

  • 1. Compliance Complexity

There is a number of complex laws that must be adhered to as a member and trustee of a SMSF. For busy professionals, this can be time-consuming, and you may not have the knowledge required to ensure your SMSF is compliant. However, there is always the option to outsource the management of the super fund and leave it to the experts.

  • 2. Costs

Early in your career, the costs associated with running a SMSF may outweigh the benefits. Costs such as auditing, financial advice, and establishment costs can be larger than anticipated – you may need to wait until later in your career to truly benefit from establishing a SMSF.

  • 3. Commitment

Investing isn’t just a game you can pick up and start playing immediately. The ability to build a diversified portfolio of investments and a strategy that has the best chance to succeed in the future takes considerable education and knowledge in the area.


How we can help

It is important to get expert advice from Endorphin Wealth Management regarding SMSF structures and if they’re the best fit for your situation.

For an obligation free discussion, call us on 03 9190 8964, or email us at