Depending on whether your fund is a segregated or unsegregated fund will dictate the answer to this question.
Segregation method Where a fund segregates their assets, the trustee will segregate certain assets or pools of assets to solely support accumulation or retirement phase liabilities. Using this method, a trustee will be able to choose between either pension or accumulation units when investing in SMI to solely support retirement or accumulation phase interests. By matching the retirement and accumulation units to the respective member interests in the SMSF, the trustee will be able to ensure the tax treatment is consistent between the SMI units and the SMSF status. Unsegregated method An unsegregated SMSF is where a fund holds interests in both the accumulation and retirement phases and sets aside assets, or pools of assets, to support a specific interest. This means that the assets earn income and change value over the course of the financial year. At the end of the financial year, any earnings and any capital gains/losses are attributed to each interest phase on a fair and reasonable basis to determine the correct tax application is applied. The proportion of a SMSFs income which can be claimed as exempt from tax, must be calculated and certified by an actuary. This calculation determines the average liabilities in retirement phase as a proportion of the average total superannuation liabilities for the financial year. To ensure the tax treatment of the SMI units is applied within the SMSF consistently, a trustee will need to ensure that the fund holds both Pension and Accumulation units and this match the certified exempt income proportion calculation. Hostplus recommends trustees seek tax advice, before determining what units you should be purchasing prior to your initial investment in SMI.