One of the most frequently asked questions about starting and running your own Self Managed Superannuation Fund (SMSF) is about the costs involved. To simplify this, we break it down into four key areas: initial advice costs, establishment costs, ongoing administration fees, and ongoing advice costs.
Initial Advice
The initial advice fee depends on whether you are seeking advice solely on setting up an SMSF or a comprehensive plan that includes Superannuation, Insurance, Debt, and other investments. Meeting with a Financial Planner, preferably a SMSF Specialist Advisor™, ensures you are dealing with an experienced professional. Always ask for a quote before agreeing to any work. Depending on the complexity of your situation, you can expect to pay between $4,840 and $18,800 (for highly complex cases), with the average being around $5,830 due to the rising amount of background research and compliance work.
Establishment Costs
The upfront or establishment costs vary based on whether you choose an individual trustee or a corporate trustee. We always recommend a sole purpose corporate trustee. If you opt for a Corporate Trustee, the setup costs range from $880 to $1,500, inclusive of the $597 ASIC Incorporation Fee. These are the basic costs for the legal documentation required to establish the fund, register it as a Complying Super Fund, and apply for an ABN and TFN.
Establishment Costs for SMSF Borrowing (LRBA)
To borrow for property via an SMSF, you will need a Bare Trust and usually a Trustee company. The Bare Trust holds the property while the loan is in place. If you use a Corporate Trustee, the setup costs range from $1,900 to $2,500, inclusive of the $640 ASIC Incorporation Fee. Note that you do not apply for an ABN and TFN for the Bare Trust/Trustee.
Ongoing Administration Fees
The ongoing administration cost depends on the complexity and size of your fund and whether it’s in Accumulation or Pension mode. Typically, you will incur two types of administration fees annually: Account Keeping fees for your tax return and Audit fees. For a simple fund, the total administration fees should not exceed $2,650 per annum. Online providers offer competitive rates, with monthly fees ranging from $85 to $189, covering both Admin and Audit. For more complex funds, costs can range from $2,500 to $5,000 per annum, but these are decreasing due to competition and technological advancements. Always choose your administrator wisely as often you get what you pay for.
Ongoing Strategy Advice
If you need ongoing advice on strategy and/or investments from an advisor or specific tax advice from an accountant, you will have to pay for their services. The beauty of an SMSF is that you control the checkbook, allowing you to assess the value of each service provider and switch if necessary. It often only requires a letter of instruction to transfer your files to a new administrator or advisor.
At We Love SMSF and our parent firm, Wealth Effect Group, we specialize in strategy, structure, and education, with investments being a byproduct of these foundations. Our SMSF service operates on a Fee for Service basis for new clients, ensuring you know your annual costs upfront and can discontinue if not satisfied. We do not handle administration or audits directly but can recommend solutions with local or online providers to suit your needs. We also collaborate with your existing accountant to maximize their expertise.
Sample Annual Fees:
We Love SMSF Adviser Annual Minimum Retainer (Advice Only): $4,400 – $22,000
Online Accounting Admin & Audit: $2,020 – $3,990 (basic preparation and submission of financials and tax return service – lower cost options do not include tax, accounting, or structure advice)
Annual ASIC Corporate Fee: $65
ATO Supervisory Levy: $276 ($552 for new funds in 2023/2024 as pay 2 years upfront)
Total: Between $3,600 to $4,500 per year for a basic fund (suits 90% of trustees).
Sample LRBA Fees:
Advice to allow us to sign Financial Advice Certificate from Lender: $4,400+
Bare Trustee Company: $662-$880 (inclusive of ASIC fee $640)
Setup: Bare Trust Documents: $500 – $1,500
Extra LRBA Ongoing Fees: Annual ASIC Corporate Fee for Bare Trustee company $321
Advice revolves around structure and strategy, ensuring you make the most of the system and your circumstances. Topics include:
Salary Sacrifice
Super Splitting, Spouse Contributions, and Co-contributions
Gearing
Re-contribution Strategies
Transition to Retirement
Insurance via Super and leaving cover in other funds
Binding Death Nominations
Reversionary Pensions
For separate investment portfolio design and maintenance, we offer a fee-for-service quote starting at $1,990 per annum.
If you would like to discuss your options without any obligation, contact me Andre Dirckze at our Gold Coast or Melbourne offices, or reach out via Teams, phone, or email.
Alternatively, use the “Schedule Now” button to set up a time that suits you.
For a copy of our Financial Services Guide, please visit our website
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