How much does SMSF Australia charge for annual SMSF accounting?

SMSF Australia offers three fixed-fee annual packages: Basic Fund at $1,300+GST (listed shares, managed funds, ETFs, term deposits), Complex Fund at $1,600+GST (adds direct property up to 2, cryptocurrency, precious metals), and Very Complex Fund from $2,000+GST (unlisted assets, private loans, derivatives, NFTs, 3+ properties). All packages include the independent SMSF audit at no additional cost.

Is the SMSF audit included in the annual fee?

Yes. The independent SMSF audit is included in all three annual fee packages — Basic, Complex, and Very Complex. It is not charged as a separate add-on.

Can SMSF Australia service my fund if I am not in the same state?

Yes. SMSF Australia operates nationally across all Australian states and territories. All client meetings and services are conducted via Zoom — there is no requirement to be near a physical office.

How much does it cost to set up an SMSF with SMSF Australia?

The SMSF setup fee is $2,000+GST, which covers corporate trustee establishment (ASIC fee $636), SMSF trust deed ($400), Class Super first-year licence ($250), ABN and TFN applications, investment strategy preparation, and rollover coordination.

Does SMSF Australia provide financial advice?

No. SMSF Australia does not provide financial planning or investment advice. Services are limited to SMSF accounting, tax, audit, compliance, and legal matters.

Can my SMSF claim financial advice fees as a tax deduction?

Can my SMSF claim financial advice fees as a tax deduction

Yes, your SMSF can claim financial advice fees as a tax deduction. However, not all financial advice fees are tax-deductible.

Financial advice fees are deductible in accordance with the Income Tax Assessment Act 1997 under:

Section 8-1 – general deduction provisions
Section 25-5 – tax-related expenses

Deductibility is determined under the general deduction provisions unless a specific deduction provision applies, such as tax-related expenses.

To satisfy the general expense provisions, an SMSF can claim a tax deduction for expenses incurred in producing or gaining assessable income, or for expenses incurred in carrying on a business. An SMSF does not generally carry on a business. An expense is not deductible if it is incurred too early, has no connection with earning assessable income, is delayed, is capital in nature, or is incurred in gaining exempt income.

What are the common financial advice fees your SMSF may pay for?

Financial advice fees can be categorised as follows:

Initial advice to establish an investment portfolio or investment strategy
Advice on taking out life insurance or total and permanent disability for members of an SMSF
Advice to manage the investment portfolio – retainers or ongoing management fees regarding income-producing assets, typically regular quarterly, semi-annual or annual reviews
Fees in relation to advice to the SMSF trustee on the management of strategies for making contributions, establishing superannuation pensions and tax-related planning advice
Fees in relation to defending your SMSF in a tax audit and general tax advice
Advice on the operation of the provisions of the Superannuation Industry (Supervision) Act 1993 (SISA)

What are the typical financial advice fees that your SMSF cannot claim?

Fees incurred to establish the fund’s initial investment portfolio are not tax-deductible. They are capital in nature and incurred too early to be associated with the production of income, as they are incurred before acquiring the asset. The cost can be included in the cost base of the specific investment for SMSF Capital Gains Tax purposes.

Advice on taking out SMSF Insurances such as new life insurance or total and permanent disability for members of the SMSF is similar to the initial investment portfolio and is not deductible. The expense does not form part of an asset’s cost base; it is a black hole expense. Generally, SMSFs do not carry on a business, and so the blackhole expenses cannot be deducted over 5 years.

Ongoing financial advice fees to manage a portfolio incurred in relation to current pension exempt income (ECPI) are not tax-deductible. The fees are apportioned or not deductible at all if the fund is in 100% pension phase.

What financial advice fees can your SMSF claim?

Your SMSF can claim tax-related financial advice fees. Advice in relation to the provisions of SISA. Ongoing management fees for the fund’s investment portfolio and advice on income protection insurance products.

Financial fees for tax-related advice

An SMSF is entitled to claim a deduction for a tax-related expense incurred in managing the fund’s tax affairs.

The ATO finalised tax determination 2024/7 in September 2024 regarding the deductibility of financial advice fees. It applied to individuals not carrying on a business and did not apply to an SMSF. However, guidance can be drawn from the determination.

The key points considered in relation to tax-related advice include:

The advice must be in relation to managing the fund’s tax affairs
Tax affairs include tax (financial) advice, provided by a ‘qualified tax relevant provider’ registered with ASIC (financial adviser with specialist education) or a tax agent registered with the Tax Practitioners Board
Strategies related to advice on contributions, pensions and tax planning may be considered tax (financial) advice
Financial advice in relation to a tax audit or general tax advice is deductible under s 25-5
A tax-related expense is not apportioned when a fund earns both assessable and non-assessable income
Advice provided in relation to the operation of SISA may be deductible under 8-1 or 25-5

New financial adviser fees

Paying fees to a new financial adviser may mean the advice fees are not fully deductible. It will depend on the advice provided.

Example – financial fees partly deductible

Katie’s SMSF has been receiving financial advice from John. Katie moved and appointed a new financial adviser, Andrew. Andrew reviewed the fund’s investment portfolio and strategy. He then recommended that the trustee change the strategy by acquiring new investments and selling some of the existing holdings. The fund can claim only part of the fees because the advice included:

a new arrangement with Andrew
a review of the fund’s investment strategy
recommendations to change the way the fund earns its income

The SMSF can claim the portion of financial advice fees incurred in managing the fund’s tax affairs.

What sort of evidence is required?

To maximise the fund’s deduction, it is important that the invoice from the financial adviser includes standard details, such as the amount, the adviser’s name, the date the expense was incurred, the invoice date, and the invoice being in the fund’s name. The fee should include an explanation of the advice provided and be broken down into components such as tax-related advice, initial investment advice, and ongoing advice.