The choice between an individual and a corporate trustee determines how an SMSF holds its assets, what happens when membership changes, how ATO penalties apply, and what lenders will accept. This guide sets out the six differences that matter, with current ASIC fees.8
The first structural question in setting up an SMSF is not about investments. It is about governance. SMSF trustee structures come in two forms: individual trustees or a corporate trustee.
The choice determines how assets are legally titled and what happens when a member dies or exits the fund. This guide sets out the differences.
SMSF Corporate Trustee Vs Individual Trustee: What Is the Difference?
Under an individual trustee structure, each member of the fund is also a trustee. The fund must have at least two individual trustees, unless a single member appoints a second non-member trustee. All members are jointly and personally responsible for running the fund, making investment decisions, and complying with the Superannuation Industry (Supervision) Act.
Under a corporate trustee structure, a company is appointed trustee of the fund, and each member must be a director of that company. The company, not the individuals, is the legal owner of the fund’s assets, and the company is registered with ASIC.
ATO statistics for 2023-24 show 72% of SMSFs using a corporate trustee, up from 70% at 30 June 2024 and 68.1% at 30 June 2023. Among newly established funds, the proportion is higher: 84.7% of funds registered in 2022-23 used a corporate trustee.
A Side-by-Side Comparison
| Factor | Individual Trustees | Corporate Trustee |
| Setup cost | Lower; no ASIC fees | Higher; ASIC registration of $636 plus an annual review fee |
| Ongoing ASIC fee | None | $70 a year for a special purpose company |
| Asset titling on member change | Every asset must be retitled | No retitling required |
| ATO penalty risk | Each trustee penalised separately | Single penalty on the company |
| Succession and estate planning | Complex on death or incapacity | The company continues |
| Sole member SMSF | Requires a second non-member trustee | Sole director is sufficient |
| LRBA borrowing | Less preferred by lenders | Strongly preferred by lenders |
Rivkin’s SMSF team can advise on which structure suits your circumstances before you commit. Contact us for details.
The Six Key Differences
1. Asset Ownership and Administration
With individual trustees, every fund asset must be registered in the names of all trustees personally. Adding or removing a trustee, whether because a member joins, exits, or dies, requires updating every asset title. For a fund holding real property, several share registries and multiple bank accounts, that is a material administrative cost. With a corporate trustee, assets are held in the company’s name, and a membership change requires only an ASIC director update. The asset titles do not move.
2. Penalty Structure
The ATO issues administrative penalties for compliance breaches at the individual level. With individual trustees, each trustee is penalised separately for the same breach, so a fund with four individual trustees can face four penalties from a single error. With a corporate trustee, the penalty applies once, to the company.
3. Succession and Perpetual Existence
A company has perpetual legal existence. When a director dies or loses capacity, the SMSF continues to operate because the trustee, the company, still exists. Under an individual trustee structure, the death or incapacity of a trustee requires prompt action and can force changes to asset titles at the same time the estate is being administered.
4. Sole Member SMSFs
A sole member SMSF with individual trustees must appoint a second person as trustee who is not a member of the fund. Under a corporate trustee, a single member can be the sole director, with no requirement to involve anyone else.
5. Borrowing Arrangements
Where an SMSF plans to borrow through a Limited Recourse Borrowing Arrangement to acquire an asset, lenders prefer a corporate trustee. Company ownership provides clearer legal separation and simpler security arrangements, and several lenders decline LRBA applications from individual trustee funds outright.
6. Cost
Individual trustees cost less to establish, with no ASIC registration fee and no annual review levy. A corporate trustee costs $636 to register with ASIC as at 1 July 2026, and a company acting solely as trustee of an SMSF qualifies as a special purpose company with an annual review fee of $70, against $342 for a standard proprietary company. ASIC indexes these fees each 1 July.
On those figures, the corporate structure costs $636 upfront and $70 a year. A single asset retitling exercise or a duplicated ATO penalty typically exceeds the cumulative difference.
Which Structure Is Right for You?
A corporate trustee is the usual recommendation for any fund that:
A corporate trustee is the usual recommendation for any fund that:
- Plans to borrow through a Limited Recourse Borrowing Arrangement, now or later.
- Holds, or expects to hold, real property.
- Is likely to see membership change over time.
- Is being established with estate planning and intergenerational transfer in mind.
Individual trustees suit smaller, simpler funds where membership will remain stable, and minimising setup cost is the priority.
Can You Change Your Mind Later?
Yes. Changing from individual to corporate trustees after establishment requires registering a new trustee company with ASIC, updating the fund’s trust deed, and retitling every asset into the company’s name. For funds holding property or multiple registries, the retitling is the expensive part. Setting up the intended structure at the outset costs less than restructuring later.
Frequently Asked Questions
Is a corporate trustee compulsory?
No. Both structures are permitted under Australian superannuation law. 72% of SMSFs use a corporate trustee, and 84.7% of newly registered funds did so in 2022-23.
What does ASIC registration cost for an SMSF corporate trustee?
As at 1 July 2026, $636 to register a proprietary company with share capital, and $70 a year for the annual review of a special purpose company acting solely as an SMSF trustee. A standard proprietary company pays $342 a year. ASIC indexes these fees on 1 July each year, so confirm the current amounts before registering.
Can a corporate trustee be the same company as a family trust?
No. The ATO requires the corporate trustee of an SMSF to be used exclusively for that purpose. It cannot simultaneously act as trustee of another trust or carry on business activities. Using the company for another purpose also removes its special purpose status and raises the annual review fee from $70 to $342.
How many members can an SMSF have?
Six. Each member must be a trustee or a director of the corporate trustee.
Conclusion
For most SMSFs, and for close to all funds that plan to borrow, hold property or accommodate membership changes, the corporate trustee structure carries practical advantages that outweigh a $636 registration fee and $70 a year.
Rivkin helps Australians establish and manage self-managed super funds with the appropriate structure from the outset. Contact us to discuss your options.
