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.

Is a loan to my own company from my self managed super fund an in house asset?

Is a loan to my own company from my self managed super fund an in house asset

Yes, it is possible for a self-managed super fund (SMSF) to lend money to a member’s company without breaching the in-house asset (INHA) rules provided the loan qualifies as an INHA and stays within the 5% cap. While SMSF loans or financial assistance to members or their relatives are prohibited under other SIS rules, these rules do not apply to a member’s own company. There are no INHA restrictions for lending to unrelated parties.

When is a loan an in-house asset?

An INHA is a loan to, lease to or an investment in a related party or a related trust of the fund. Essentially, related parties are members of an SMSF and their associates including:

companies and trusts having a close link or connection to SMSF members and their relatives
business or investment partners (and spouse and child of the partners) and the partnership
SMSF trustees or directors of a corporate trustee

Any loan made by an SMSF to a company controlled by a member and their associates is an INHA. However, an SMSF is allowed to have 5% of its total assets as in-house assets.

Hint – An SMSF can acquire an INHA as long as it does not cause the fund to have total INHAs exceeding 5% of the fund’s total assets at acquisition or as of June 30. The 5% threshold is based on the total market value of the fund’s assets.

What are the critical steps when my SMSF lends money to my company?

the loan does not exceed the 5% threshold
there must be evidence of a loan in a formal written loan agreement
the terms and conditions of the loan must reflect normal commercial dealings, including repayments and interest rates
third party evidence of the commercial dealings is required for the SMSF auditor
ensure security of the loan has been properly and appropriately provided e.g. personal property securities register (PPSR) – ensure the underlying security is something the fund can acquire if the related party lender defaults on the loan

Example – Lending money to a member’s company – 5% threshold

Jo’s SMSF lends money to her company, J & P Pty Limited. The SMSF has total assets valued at $950,000 on the 10^th March 2025. The fund has no other INHA and lent Jo’s company $47,500. The fund has suffered a decline in the value of its assets during the year and at the 30^th June the fund’s total assets has dropped to $800,000 and the loan at that date was $43,000.

Jo’s SMSF was able to lend her company $47,500 as the fund’s total INHAs did not exceed the 5% cap on the 10^th March when the loan was made. However, the INHA 5% threshold was breached at the 30^th June 2025. There is a breach of the INHA provisions, but the fund only has to create and implement a plan to reduce the INHA back to the 5% cap before the 30^th June 2026.

What happens if my SMSF doesn’t make a loan on commercial terms?

SMSF auditors are focussing on evidence of related party loans to ensure the documentation complies with commercial lending practices and the terms and conditions of the loan are being carried out in accordance with the loan agreement.

A loan given to a related party must follow standard commercial practices, just as if it were between unrelated parties dealing at arm’s length. The term loan is defined in Subsection 10 (1) of the SIS Act as:

“loan includes the provision of credit or any other form of financial accommodation, whether or not enforceable, or intended to be enforceable, by legal proceedings”.

Therefore, merely not having a formal loan agreement does not circumvent the INHA provisions. Other provisions of SIS and the Tax Act can mean the possibility of breaching the following:

s109 – arm’s length dealings –interest is nil or less than expected
s62 – sole purpose test – the loan is not made for the provision of retirement benefits for the fund’s members
breaching the non-arm’s length income (NALI) provisions under the Taxation Administration Act 1953 and the Tax Assessment Act 1997 which arises if the interest is higher than expected resulting in tax being imposed on the net interest income at 45%

Third party independent evidence is required to support the terms and conditions of the loan to a related party. The terms should reflect the risk undertaken by the SMSF such as a higher interest rate when lending without providing security or lending to a party with a bad credit history. An SMSF trustee must act if the related party make late payments or defaults on the loan.

Can my SMSF lend money to my company if I don’t control it?

Yes, you can. A company which is not controlled by a member and their associates or related parties is not a related company. An SMSF can lend money to an unrelated company without the 5% cap restriction. To ensure compliance with other provisions of SIS, regardless of whether the loan is made to a related or unrelated company the loan must be made:

in accordance with the SIS legislation,
on commercial terms and conditions,
in accordance with the sole purpose test. and
the fund’s trust deed and investment strategy do not prohibit the loan

What is control?

Determining whether your company is a related party of your SMSF often comes down to control. A company is considered related if those who are SMSF members and their associates collectively have control. Usually, this means the group holds more than 50% of the voting rights, allowing them to influence decisions at general meetings. Control can also exist if the group “sufficiently influences” the company or if it’s likely the company is under an obligation, or might reasonably be expected, to act in accordance with the directions or wishes of the group.

If ownership is split 50-50, that’s not considered control. However, if one director has the power to cast a deciding vote when there’s no agreement, they might be seen as having sufficient influence. This authority is typically outlined in the company’s constitution.

A typical “mum and dad” company, where directors and shareholders are also SMSF members, the company is a related party. This is because the SMSF members are related parties, collectively control the company’s decisions, and control the voting rights.

It’s important to note that simply having strong business connections doesn’t automatically make people related parties.

Example 50-50 ownership

Scenario 1

Sue and John are not related and carry on a business of manufacturing mining equipment through, S & J Pty Limited. They are both directors and equal shareholders of the company. Sue is the sole member of her SMSF and sole director of the fund’s corporate trustee. Sue’s SMSF is in a position to lend the company $100,000 which is 25% of the fund’s assets.

Sue’s SMSF can lend $100,000 to S & J Pty Limited because the company is not controlled or significantly influenced by Sue or any of her associates. John is not related to her and is not a member of her SMSF. Neither Sue or John control more than 50% of the voting rights and John has a casting vote in accordance with the company’s constitution. Sue’s SMSF is not limited to lending 5% of the fund’s total assets to S & J Pty Limited.

Scenario 2

Same details as scenario 1 except Sue and John also own a rental property together which is not related to the business.

Sue’s SMSF is limited to lending the company $20,000 which is 5% of the fund’s total assets. Sue and John are not related but they have a tax partnership as they share income from renting a residential property. Sue and John are now related parties and collectively control and influence S & J Pty Limited.