Understanding the cost of an SMSF is important before deciding whether it is appropriate. Unlike traditional super funds, SMSF costs are largely fixed, which means the size of your balance has a direct impact on cost efficiency.
What does it cost to set up an SMSF?
Setting up an SMSF generally involves:
- Trust deed and establishment: around $500 to $1,200
- Corporate trustee setup: around $1,000
- Additional professional setup support (if required)
In most cases, total setup costs may be approximately $1,500 to $3,000. Costs can vary depending on the provider, fund structure, complexity, and services used.
What are the ongoing SMSF costs?
SMSFs require ongoing administration and compliance each year, including:
- Accounting and financial statements
- Independent annual audit
- ATO supervisory levy
- ASIC fees for corporate trustee
- Investment and advice-related costs (if applicable)
For a straightforward fund, annual costs are typically around $3,000 to $5,000 per year. Costs can vary depending on provider, complexity, and services used.
More complex funds, such as those holding property or borrowing arrangements, may incur higher costs.
Fixed costs vs percentage fees
SMSF costs are generally fixed dollar amounts, rather than percentages.
This means:
- Smaller balances may result in a higher proportional cost
- Larger balances may result in improved cost efficiency, however this depends on individual circumstances
When does an SMSF become cost-effective?
While there is no minimum balance requirement, cost-effectiveness depends on individual circumstances. Some industry research suggests SMSFs may become more cost-efficient at higher balances, but this varies significantly.
The more important consideration is whether the structure supports your overall strategy, rather than balance size alone.
Final thoughts
Cost alone should not determine whether you set up an SMSF. The value comes from how the structure supports your goals, level of control, and long-term planning.
It is also important to remember that SMSFs involve ongoing compliance responsibilities and may not be cost-effective for all investors. As a trustee, you are legally responsible for meeting all regulatory requirements and may face penalties if these obligations are not met. Ongoing regulatory obligations include record keeping, reporting, and arranging an annual independent audit.
Frequently Asked Questions
How much does it cost to set up an SMSF?
Setting up an SMSF generally costs between approximately $1,500 and $3,000, depending on the provider, fund structure, complexity and professional services required.
What are the ongoing costs of an SMSF?
Typical annual costs for a straightforward SMSF are around $3,000 to $5,000, although costs vary depending on the fund’s investments, complexity and professional support.
Is there a minimum balance required for an SMSF?
No. There is no legislated minimum balance to establish an SMSF. However, because many SMSF costs are fixed, cost-effectiveness depends on your individual circumstances and fund balance.
Are SMSFs cheaper than industry super funds?
Not necessarily. Costs vary between SMSFs and industry or retail super funds and can be influenced by factors such as fund balance, investment strategy, service requirements and complexity. Which option is more cost-effective will depend on individual circumstances.
General advice disclaimer
This article contains general information only and does not take into account your personal objectives, financial situation or needs. Before acting on any information, you should consider whether it is appropriate for your circumstances and seek advice from a licensed financial adviser.
Written by Stephanie Yeung, CFP®, Founder, Ascent Wealth Solutions (Melbourne)
Ascent Wealth Solutions Pty Ltd is a Corporate Authorised Representative of Personal Financial Services Limited ABN 26 098 725 145, AFSL 234459. Stephanie Yeung is an Authorised Representative of Personal Financial Services Limited ABN 26 098 725 145, AFSL 234459.
References
- Australian Taxation Office (2025), Self-managed super fund statistics, Australian Government. Available at: www.ato.gov.au/about-ato/research-and-statistics/in-detail/super-statistics/smsf-statistics
- Australian Taxation Office (2026), Self Managed Superannuation Funds, data.gov.au dataset, Australian Government. Available at: data.gov.au/data/dataset/self-managed-superannuation-funds
