SMSF costs explained

Here are the main costs to consider.

Setup costs

Setting up an SMSF means creating the fund’s legal structure and registering it with the Australian Taxation Office (ATO).

Depending on your provider, setup may include:

• Preparing the trust deed

• Registering the fund for an ABN and TFN

• Establishing the trustee structure

• Setting up a bank account and electronic service address (ESA)

• Registering the fund to receive rollovers and contributions

If your SMSF has a corporate trustee, there is also an ASIC fee to register the company.

Stake Super setup costs

Stake Super doesn't charge a separate SMSF setup fee.

The cost of setting up a corporate trustee is included in your first year's annual admin fee.

Ongoing SMSF costs

Every SMSF has compliance obligations, which typically include:

• Annual accounting

• Independent audits

• Preparation and lodgement of the annual SMSF annual return

• The ATO supervisory levy

• ASIC annual review fees,for corporate trustees

Depending on how your SMSF invests, you may also incur:

• Brokerage and transaction costs

• Investment management fees

• Property-related expenses

• Insurance premiums

• Actuarial certificate costs,where required

What does Stake Super include?

Stake Super's admin fee starts from A$990/year and includes:

• SMSF setup

• Ongoing administration

• Annual financial statements

• Arranging the independent audit

• Preparation and lodgement of the SMSF annual tax return

Additional costs may apply depending on your investment strategy, including property administration or investment-specific expenses.

Are SMSF expenses tax deductible?

Some SMSF expenses may be tax deductible, while others aren't.

Generally:

• Ongoing administration and compliance costs may be deductible to the SMSF

• Some investment-related expenses may also be deductible where permitted

• Setup costs and other capital expenses are generally not deductible.

The tax treatment depends on the expense and your fund's circumstances, so it's worth seeking independent tax advice if you're unsure.

Is an SMSF cost-effective?

There's no single balance where an SMSF suddenly becomes worthwhile.

Cost-effectiveness depends on factors including:

• Your super balance

• The number of members in the fund

• Your investment strategy

• The provider you choose

Because many SMSF costs are fixed rather than percentage-based, larger balances can make those costs a smaller percentage of your super.

Research commissioned by the SMSF Association suggests SMSFs may become cost-competitive from balances of around A$200,000, depending on the fund and how it's managed. 

A simpler way to manage SMSF costs

With Stake Super, setup is included and ongoing administration is handled for you. That means less paperwork to manage and more time focused on your investments.

Get started online or speak to a Stake Super specialist.

Ciara Conway

Commercial Manager - Stake Super

Ciara is a Commercial Manager at Stake Super, with over 10 years of experience in the SMSF industry and an MA in Accountancy and Finance from Heriot-Watt University in Edinburgh, United Kingdom. Having previously worked at a chartered accounting firm and one of the largest SMSF administrators in Australia, Ciara has extensive knowledge of SMSF compliance. She is also a current member of the SMSF Association.