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 Liquidity Requirements

Navigating SMSF Liquidity Requirements including SMSF Loans

A SMSF is required to ensure they have sufficient cash to pay their current and future debts. This not only relates to SMSF loans but also to the ongoing operations of a fund and payment of pensions, death benefits, payment of lump sums and investment expenses such as property expenses and the capital cost of an investment. On the horizon is the new Division 296 tax on the growth of member balances which exceed $3million. The new tax has not been legislated and will be fought over in the senate before it comes into effect which is not slated to start until1 July 2025 (2025/26 financial year).

Refer to our resources page in relation to capital gains in a SMSF for further details about Division 296 tax.

The Importance of Liquidity in Your SMSF Investment Strategy

SMSF Liquidity Requirements R 4.09(2C) of the SIS regulations require a number of factors to be taken into account when formulating an investment strategy for a SMSF. The following factors are required to be taken into account in relation to liquidity:

have regard to the fund’s expected cash flow requirements taking into account the liquidity of the fund’s investments
the ability of the fund to pay its existing and future debts

The SMSF trustees must take into account the possibility of a fire sale in case of unexpected events such as the death of a member and if the asset can be sold quickly to meet cash flow requirements. Timing of asset disposal or redemption are critical to pay for new investments or to cover large operational expenses which can include a large tax bill or payment or transfer of member benefits.

There can be serious consequences for a trustee who fails this regulation and does not attempt to rectify it, possibly resulting in a qualified audit report or if the breach is very serious the auditor may report it directly to the Australian Taxation Office (ATO) in an auditor’s contravention report (ACR).

What are Liquid Assets in SMSFs?

Liquid assets are easily converted into cash in a short period of time. Liquid assets include:

Cash
Listed equities such as Shares or Managed Funds
Term deposits
Short Term Bonds
Cryptocurrency (generally)

Assets which have a public market such as the stock exchange provide a ready market for disposal of equities. Term deposits and short-term bonds can be redeemed but there may be loss of interest or other penalty for an early exit.

Managing Self-Managed Super Fund (SMSF) Liquidity Requirements

SMSF Liquidity Requirements Timing and planning of cash flows into and out of the fund is critical to ensure there is sufficient cash available to pay for expected and unexpected events. Contributions such as downsizer contributions, CGT small business contributions, member contributions, spouse contributions can be made to the fund subject to the member’s contribution caps to assist with cash flow. Rollover of super benefits from other funds may also be considered. Of course, the disposal or redemption of existing fund assets or investment returns can provide cash at critical times.

Consult your specialist SMSF adviser to discuss strategies that can be made to provide further cash and to obtain advice about the consequences of selling fund assets.

How much cash do you need in your self managed super fund (SMSF)? There is no one right answer and is very dependent on your individual circumstances, but it is critical to ensure sufficient cash flow is available with consideration to potential future obligations including:

Pension payments and pension minimum draw downs
Lump sum payments and rollovers to other funds
Pay debts when due such as tax and accounting fees
SMSF borrowings via a Bare Trust

SMSF Borrowings and Liquidity

A self-managed superannuation fund (SMSF) will often borrow to purchase an investment property such as residential or commercial property. A fund may then be negatively geared, which means property expenses are not covered by the rental income and the SMSF must fund the additional cash from other sources within your SMSF. Mortgage repayments can add a substantial amount to the usual property expenses such as rates, repairs and maintenance, insurance and management fees. This is certainly a popular investment choice and there is nothing wrong with this type of investment but will often mean larger cash reserves are needed by trustees to ensure sufficient liquidity buffers are in place.

Lumpy Assets and SMSF Property

Lumpy assets often include property but can also include other assets held by a SMSF such as unlisted company shares, artwork or an unlisted real estate unit trust. These types of assets are described as lumpy as generally, they cannot be sold quickly and easily be broken up. Whilst there may be a public marketplace to sell the property it can take many months. All of these types of assets generally indicate that the fund should consider higher liquidity buffers.

Key Takeaways

ensure the SMSF has sufficient cash reserves and ongoing cash flow to meet its liquidity requirements
consider investing in a variety of asset classes with different liquidity timeframes depending on whether it fits in with your investment strategy
consider the cash flow requirements when making any SMSF investments