How much will your SMSF cost you? What fees will you incur?
How Much Does My SMSF Cost
It depends on how much you do yourself, how much you pay in penalties if you get it wrong and how much you get others to do.
Over the lifecycle of your SMSF there are at least 10 trigger points that might cost you money. Here is a quick overview.
1 – ASIC Fees to Set Up Corporate Trustee
Your SMSF must have at least one trustee – be it an individual (you) or a company. An individual trustee is free. A corporate trustee incurs an ASIC fee at registration.
2 – Trust Deed
Your SMSF is only a relationship – a relationship between trustees and members over trust property, governed by a deed. And this deed usually doesn’t come free.
3 – Bank Account
Most bank accounts are free – for example NAB, ING or Macquarie – but some charge.
4 – Professional Fees
Your accountant will probably charge you a fee to prepare your SMSF’s annual report. As will any financial adviser you engage for the actual investment of your super.
5 – Software
Any software your accountant uses – usually Class or BGL – is usually included in their fee. If you do it yourself, you can pay for a BGL subscription or try a free version of Excel, McLowd or Wave.
6 – Audit
Every SMSF requires an audit of its annual return by an independent auditor registered with ASIC. Your accountant might cover this in their fee.
7 – Actuarial Certificate
Whenever your SMSF is in hybrid mode – ie in accumulation and retirement mode – you need an actuarial certificate. And that costs money. Your accountant might cover this in their fee.
8 – Annual ASIC Fees
An individual trustee is free – although far from ideal – but a corporate trustee will incur an annual ASIC fee.
9 – SMSF Levy
The ATO will charge an SMSF levy to your tax refund or liability when you lodge your tax return.
10 – ATO Penalties
Superannuation is a highly regulated environment where it is easy to make mistakes, which can cost you dearly.
If you have a question, please call or email. There might be a simple answer to your query.
Disclaimer: numba does not provide specific financial or tax advice in this article. All information on this website is of a general nature only. It might no longer be up to date or correct. You should contact us directly or seek other accredited tax advice when considering whether the information is suitable to your circumstances.
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Last Updated on 15 August 2020
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We look after the tax and accounting of your business, wealth and SMSF. We are Chartered Accountants and Registered Tax Agents in Australia and IRS-registered CPAs in the US.