SMSF Fees: What’s the Real Cost of Running an SMSF?

Cost of Running an SMSF

Being able to have more control over your retirement planning and investments is one of the many reasons SMSFs (self-managed super funds) are such a popular option these days. With more investment possibilities and better organization of your savings SMSF is the perfect structure that gives you access and enables you to mange your income investments, cash accounts, property and shares within the fund. You are able to organize and adjust all the different investments according to your individual needs and requirements.

Before you set up your super fund you should first get familiar with all the laws and regulations set by the ATO (Australian Taxation Office). An essential thing to take into account in this case are all the SMSF fees for both establishing and running the fund. The main goal here is to achieve that perfect balance of costs and returns. Put simply the SMSF costs should not exceed your returns. Your super fund can have up to 4 members where each member also has the role of trustee. One SMSF structure can consist of either individual or corporate trustees. For SMSFs with corporate trustees one company is established to have the role of a trustee while each member acts as a director of that company. For individual trustee structures on the other hand every member must act as the trustee of the fund as well. Once you’ve decided what structure will work the best for you it is time to set up the fund.

You should first name you SMSF and start preparing all the documents, during the whole process you should follow all the relevant SMSF laws and regulations and in order to set up the fund properly it is essential to have professional SMSF advisors that have the required knowledge and expertise regarding all the different rules and regulations. The SMSF fees are different depending on the structure of your super fund as well as how you mange your investments. Establishing a fund with individual trustees can cost around $150, while the costs for corporate trustees are $1100-1200. Any super fund includes a trust deed which contains all the rules and regulations that the trustees must follow. Another important document that helps you keep track of all your finances is the SMSF audit. For $500-450 professional SMSF advisors can help you find a reliable auditor that can efficiently prepare your annual audit. Organizing your accounts and tax returns are also a vital part of running your super fund and all this is included in the administration fees.

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