How Much Does it Cost to set up an SMSF?
The cost to set up an SMSF is $2,000 plus GST.
With SMSF Australia, this all-inclusive price covers everything from legal fees, ASIC costs for the Corporate Trustee, ATO registrations, accounting costs including the rolling over of any existing funds into the new bank account – everything you need to set up an SMSF for one single cost!
We include government registrations and software licences in our all-in-one price, so you don’t need to factor in the cost of additional services after you commence the setup process with us.
As we have a specialist SMSF Lawyer on board, you won’t have to deal with multiple providers and pay additional fees for an external legal professional in order to get your fund up and running.
Some expenses included in the cost to set up an SMSF are:
- ASIC fee to establish a corporate trustee ($576)
- The Class Super cloud software platform, a recurring annual fee, which also includes the Electronic Service Address (ESA) you’ll need to start investing ($280)
- The creation of your SMSF Deed and trustee paperwork, which need to be handled by an SMSF Lawyer ($400)
Plus:
- ATO declarations and registrations, including ABN and TFN
- Setup of your future Audit File on the CloudOffis platform
- Accounting time and associated cost to set up an SMSF and the completion of any rollovers
In addition to the initial set up fee, SMSFs also require ongoing accounting costs to oversee the general administration of your fund for the SMSF tax year and to ensure that they maintain compliance with the rules and regulations set out by the Australian Taxation Office.
Depending on the size and complexity of your fund, you may be expecting to pay thousands for these ongoing fees but it’s much more affordable than you think – thanks to our fixed priced packages starting from $1,300+GST
The SMSF Australia Difference
At SMSF Australia we provide upfront, fixed-priced quotes in advance with no hidden fees or required add-ons. We believe in transparency and affordability which is how you’ll know what you’ll pay and why.
Our quoted setup price of $2,000 plus GST is all it cost to set up an SMSF and get you ready to make your investments.
We don’t charge by the hour for your general SMSF accounting or fund administrative needs throughout the financial year – it’s all included in a fixed price.
Rather than offer a buffet of services you have to pick and choose, we have devised three comprehensive packages at different price points based on your individual needs and investment goals, as well as the complexity of your fund.
Our popular Basic Fund plan contains everything required to maintain a compliant SMSF, without the need to purchase add-on services, which can quickly stack up.
A Basic Fund ($1,300+GST per annum) will get you:
- A dedicated SMSF Accountant
- Preparation for the Annual SMSF Audit
- SMSF Tax Return Lodgement
- Annual financial statements and compliance documents
- 12 month licence for Class Super
- A range of investment options including term deposits, cash savings, bank accounts, shares and wrap investments
Clients looking to invest in precious metals, collectables, cryptocurrency and up to two property holdings within their SMSF will need to purchase a Complex Fund package for $1,600 plus GST.
For additional properties, foreign assets, derivatives, unlisted assets, warrants and options, talk to us about a Very Complex Fund and we’ll devise a custom package suitable to your goals.
The reason we price Complex and Very Complex Funds at a different rate is because some investment types incur higher audit costs. So, before commencing any work with you, we’ll always confirm the complexity requirements of your fund to ensure you have the right level of support and avoid any nasty bill shock.
Because SMSF’s are required to ‘pay for themselves’, there are no out pocket expenses that can’t be paid from your SMSF as even the initial $2,000 plus GST cost to set up an SMSF of will be reimbursed from your SMSF funds once the rollover is complete.
After that, your ongoing accountancy fee can be paid from your SMSF bank account when we complete your annual SMSF Tax Return, which is before 28th February for first year funds or 15th May for funds already established.
Should you need services that cannot be pre-quoted, such as assistance with major ATO audits or contravened funds, our hourly billing prices are as followed:
- SMSF Lawyers: $450 + GST
- SMSF Director: $360 + GST
- General Accountants: $150 + GST
The SMSF Setup Process
Choosing to open a self-managed super fund through SMSF Australia means you’ve got a dedicated onshore accountant to guide you through the process from start to finish.
The first step in an SMSF Setup is choosing a name for your fund as well as your corporate trustee. While the fund name does not need to be unique, the corporate trustee does so you’ll need to check on ASIC to see if your desired name is available.
We will always recommend registering a corporate trustee for your SMSF as it helps minimise administration time and expenses as you won’t need to update your investment records such as Share Certificates, Land Titles etc should a member leave the fund through death, divorce or voluntary departure.
Conversely, should new members join – such as children when they reach adulthood – it is not necessary to rename investments or sign large volumes of paperwork. Corporate Trustees are convenient and affordable
Maintaining a corporate trustee is a minimal expense of just $59 per annum payable to ASIC directly. Keep in mind this annual fee is tax deductible and paid directly from your SMSF to ASIC.
Once the SMSF and trustee names are decided, we’ll go through the necessary paperwork and identity checks which will require a copy of your government-issued photo ID – such as a driver’s licence or passport – to finalise your SMSF setup.
If you’re not already a director of another company you will be required to apply for a DIN, or a Director’s Identification Number, which is completed through the Australian Business Registry Services. This is a relatively new requirement brought in by the government to attempt to better track Phoenix operations. Unfortunately, it is mandatory and outside of our control.
Now that the groundwork is laid, it’s time to move on to the specifics of your SMSF, including the SMSF Deed, member applications, trustee declaration forms and the investment strategy. These are all documents we will provide you with along with step by step instructions on how to complete them.
Sometimes, we might experience a delay of up to 28 days before the ATO Registrations are finalised in circumstances where the ATO chooses to further investigate the SMSF application. While quite rare, they do happen occasionally and usually in circumstances where the trustees have outstanding personal tax obligations or a history of non-compliance with the ATO. When an application is delayed there is little that can be done to speed things up. That said, the huge majority (95%+) of registrations are approved instantly! You can find more information about the potential delays on the ATO side here on the ATO website.
In order to receive funds into your new SMSF, you will need to have an Electronic Service Address, also known as an ESA. This is covered as part of the setup cost and is administered via the Class Super platform. The ESA of your new fund will be ‘smsfdataflow’ which you will need to provide to your employer along with the bank details of the new SMSF in order to have future contributions directed to the SMSF.
The final stage of setting up your SMSF is to open a new bank account for your fund which you are able to do via any bank or financial institution. SMSF Australia has no restrictions on which bank you are able to use as we are not affiliated with any banks or brokers.
Do you need help with an SMSF Setup?
Give us a call on 1300 392 544 or get in touch online
