What is a platform or an SMSF and do they replace your super fund?

By guest contributor Bec Wilson

19 May 2025

When you go to see a financial adviser in Australia, the most common recommendation is usually to move your super from a traditional super fund into a platform or Self-Managed Super Fund (SMSF), so they can manage it more personally and actively for you. But here's the thing – some traditional industry super funds now offer professionally managed investment options with low fees and strong long-term performance. These can be attractive for people who want a simpler, more hands-off approach – so it’s smart to compare your choices before making any decisions.

Most everyday Australians don’t walk into an adviser’s office asking for a platform, or even an SMSF unless they plan to do active investing with the ongoing guidance of an adviser. Many seeing an adviser in their 50s or 60s have never even heard of them and don’t know what’s involved in setting them up or maintaining them. So let’s take a look.

A platform, sometimes referred to as a wrap platform or wrap account is an investment service that allows advisers to manage multiple assets under one structure on your behalf. They’re tech-based investment platforms really. Instead of keeping your super in an industry or retail superannuation fund (like Brighter Super), you roll your super into a platform, where an adviser selects and manages your investments for you.

This means you’re no longer in a traditional super fund – you now have a portfolio of investments inside the platform that need to be managed. And that comes at a cost. You’ll usually pay fees not just for the platform, but for the investments themselves and for the adviser’s strategic and ongoing services.

Platforms offer flexibility of what you can invest in, professional oversight from your adviser, and access to a broad range of investments. But in many cases, they add a layer of complexity and a need for ongoing advice and ongoing fees that isn’t necessary for everyone. Unlike industry funds, where you might receive one-off strategic advice and then manage the account yourself, platforms generally require ongoing advice for the duration of the time your funds remain on the platform. Without an adviser actively involved, members may find themselves unable to make changes or manage their investments, effectively becoming 'orphaned' if the adviser relationship ends.

Self-Managed Super Funds (SMSF) allow you to take full control of your super, giving you the freedom to choose and manage your own investments. Instead of keeping your super in an industry or retail super fund (like Brighter Super or other funds), you establish your own SMSF, where you make all investment decisions and take on the legal and regulatory responsibilities of running the fund.

An SMSF can hold a wide range of investments, including shares, ETFs, managed funds, bonds, and even direct property and derivatives – which is one of the key reasons some investors consider them. But with control comes responsibility. As an SMSF trustee, you are legally responsible for complying with tax and super laws, managing investment risks, lodging reports with the ATO, and ensuring the fund operates in the best interests of all members.

Importantly, SMSFs are also required by law to have a documented investment strategy. This strategy must guide your investment decisions and be reviewed regularly to ensure it continues to meet the needs and retirement goals of the fund’s members. In practice, this is a common area of non-compliance, with some trustees either overlooking the requirement or keeping a generic strategy that doesn’t reflect the fund’s actual investments – something the ATO has been increasingly paying closer attention to in audits.

SMSFs also come with ongoing costs – you'll need to pay for accounting, auditing, compliance, and financial advice, and in many cases, these fees can exceed what you’d pay in a well-managed APRA-regulated super fund. SMSFs can be a good fit for experienced investors who want direct control over their super, but for many, the effort, cost, and complexity outweigh the benefits – especially when industry and retail super funds now offer more investment flexibility than ever before.

In contrast, APRA-regulated super funds like Brighter Super offer a simplified, professionally managed way to invest your superannuation, usually at a much lower cost. Your investments are pooled into funds, and overseen by a team of investment professionals. And you have access to a range of financial advice options to help guide your retirement planning. In recent years, fees associated with regulated super funds have reached some of their lowest levels, enhancing their appeal. Notably, top-performing super funds, including Brighter Super, have delivered impressive returns. For instance, in the year ended 31 December 2024, Brighter Super's Growth option returned 13.97%, Balanced option returned 12.08%, and MySuper default option returned 11.60% (all in Accumulation). This compares with an ASX200 return of 11.2% over the same period. These figures highlight the potential benefits of remaining with a well-performing APRA-regulated fund.

For Australians with their super in a high-performing and regulated superannuation fund, like Brighter Super, the real question I want you to ask yourself is whether moving your super to a platform or SMSF will actually improve your financial position. It’s not a question that all advisers will want to answer – but the good ones should be happy to.

About Bec Wilson

Bec Wilson is one of Australia’s most respected authorities on midlife and modern retirement. She’s the bestselling author of How to Have an Epic Retirement, the #1 bestselling retirement book in 2023 and 2024, the host of the Prime Time podcast, which is now ranked in the Australian top 200. She runs Australia’s only 6-week retirement education program, and writes a weekly newsletter at epicretirement.net for more than 65,000 readers. 

Visit Bec Wilson's website at epicretirement.com.au.