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.

SMSF fee comparisons

There is a lot of variability in the fees charged to SMSFs, partly due to the different levels of complexity in different funds and partly due to vastly different accounting firms servicing the SMSF Industry. Currently, there are over 646,000 SMSFs with over an estimated $1.01 trillion in assets. The SMSF market continues to grow.

The ATO have come out with their latest statistics based on the 2022/23 financial year showing the median and average fees for operating an SMSF. These statistics are typically two years behind due to delays in SMSF annual return lodgements.

The statistics provide an independent source of fees paid by SMSFs which can be used as a guide to compare fees between SMSF administrators.

Median and average operating costs for SMSFs

The ATO statistics show the median operating costs for an SMSF in the 2022/23 financial year are $4,309 and the average costs are $8.931. The operating costs include the SMSF auditor fees, management and admin expenses (accounting fees), ATO supervisory levy and other deductible expenses. The statistics come from the tax-deductible expenses recorded by SMSFs in their annual returns.

Expense type	Median	Average
SMSF Auditor Fee	$550	$641
Management and Admin Expenses	$3,166	$4,861
Supervisory Levy	$259	$259
Other Deductions	$334	$3,170
Total Expenses	$4,309	$8,931

Operating costs do not include variable costs of an SMSF such as insurance premiums, investment expenses and interest expenses.

Wholesales fees

SMSF Australia’s accounting and audit fees range from $1,300+GST to $1,600+GST for complex funds. Very complex funds are from $2,000 +GST. Our fees include audit costs which a lot of firms will do as an add on to their general pricing as opposed to an inclusion.

What do ATO statistics say about operating costs for larger SMSFs?

As expected, larger SMSFs have higher operating costs. The table below are median operating costs.

Expense type	>$100k-$200k	>$2m-$5m	>$5m-$10m
SMSF Auditor Fee	$495	$604	$659
Management and Admin Expenses	$1,968	$4,499	$5,799
Supervisory Levy	$259	$259	$259
Other Deductions	$518	$259	$318
Total Expenses	$3,240	$5,621	$7,035

SMSF Australia fees are based on complexity and not on size of the fund’s assets.

Cost of annual SMSF audit fees

All SMSFs are required to undergo audits. The ATO is responsible for regulating SMSFs, while ASIC licenses and oversees SMSF auditors. According to ATO statistics, the median audit fee of $550 has remained unchanged for several years, and the average cost was $641 for the 2022/23 financial year, compared to $687 in 2018/19. Data from the ATO indicates a decrease in the number of SMSF auditors, with figures falling from 5,143 in 2018/19 to 3,166 in 2022/23. The ATO has reported a high rate of voluntary auditor registration cancellations following compliance actions.

Increased scrutiny from the ATO, ASIC, and auditing professional bodies has identified independence and competency as key areas of focus. As a result, administration or accounting firms are generally not permitted to audit their own SMSFs or establish reciprocal arrangements with other friendly firms.

What is the viable minimum size for an SMSF?

In 2020, the SMSF Association engaged Rice Warner to update a 2013 report prepared for ASIC, examining factors such as determining the minimum balance when SMSFs become cost-effective compared to industry or retail funds. Rice Warner found that SMSF operating expenses are now much more competitive than in 2013. Technology has certainly driven the cost reduction in administration costs. Cost is not the only motivator to establish an SMSF, often the members want control over their retirement nest egg and believe they can do better than the larger retail or industry funds.

SMSF Association Cost of Operating SMSFs 2020

The report found:

“In summary:

SMSFs with balances of $200,000 or more provide equivalent value to Industry and Retail funds at all levels of administration.
SMSFs with balances of $500,000 or more are generally the cheapest alternative.
The majority of SMSFs with low balances either grow to competitive size or are closed. Those that remain are generally remnant funds on low fees.”

What does it cost to establish a new SMSF?

The cost of a new SMSF varies across providers and generally the average fee is between $2,000 and $3,000. It can be a little bit cheaper if electing to have individual trustees. However, from a compliance perspective a corporate trustee is very highly recommended and can be cost effective especially in light of penalties if the trustee inadvertently breaches SISA or a member dies or becomes mentally incapacitated. ATO penalties are applied to each individual trustee and not to each director of a corporate trustee.

SMSF Australia charge $2,000 plus GST to establish a new SMSF which includes a new corporate trustee, the trust deed and related documents, ATO registrations, class super platform (includes Electronic Service Address), various templates and declarations.

Can my fund obtain a tax deduction for the setup costs?

No, the setup cost is a non-deductible expense as the ATO consider it is a capital cost.

Are SMSF operating expenses tax deductible?

Operating expenses, including:

audit
accounting and administration fees
annual ASIC fees
actuary certificates
ATO supervisory levy
ASIC annual fees

are generally tax deductible unless the fund is paying pensions. When pensions are paid, expenses related to exempt income are only partially deductible. However, costs specifically deductible under the tax act (such as actuary certificates and the ATO supervisory levy) remain fully deductible regardless of pension payments.

Hint: The cost of an actuary certificate is fully deductible if it pertains to calculating exempt current pension income, as this relates directly to managing an SMSF’s tax affairs.

Are SMSF investment expenses tax deductible?

Generally, investment expenses such as the cost of the investment or cost incurred to enhance the investment are capital in nature and included in the cost base of the asset and subject to capital gains tax. Ongoing management fees or annual adviser fees are generally deductible. Adviser fees which are paid to prepare an initial investment strategy or initial investment advice is capital and not deductible. Similar to operating expenses when paying pensions ongoing management or adviser fees may be partially deductible.