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.

Understanding Loan-to-Value Ratio (LVR) for SMSF Loans

Self-managed super funds (SMSFs) borrowing using a Bare Trust /Limited Recourse Borrowing Arrangement (LRBA) must understand the impact the loan-to-value ratio has on the amount of capital a fund can borrow. The major banks have exited the SMSF borrowing scene, but the gap has been quickly replaced by second tier-lenders.

How Much can a SMSF Borrow?

The LVR is used to calculate the maximum loan amount a lender will lend to a borrower. The lender takes on risk based on such things as the market valuation of the underlying property or other asset and ability of the borrower to repay the loan. The LVR generally indicates the maximum percentage of the market value of the property or other asset the lender is willing to lend.

Example Fred ‘s SMSF wants to borrow money to purchase a residential investment property valued at $500,000. The LVR is 80%. The fund is able to borrow a maximum of $400,000.

What is the effect of the LVR on a Self Managed Super Fund (SMSF) Home Loan?

Loan-to-Value Ratio

As a result of the SIS borrowing restrictions the lender will generally want higher interest rates and lower LVR for a SMSF loan. There are a number of SMSF specialist lenders offering loans on SMSF residential property who are advertising LVRs up to 80% with one even offering 90%. The interest rates are higher as the LVR increases.

A Self Managed Super Fund (SMSF) can borrow under a limited recourse borrowing arrangement (LRBA) which has specific requirements under the SIS legislation. Lending institutions will assess a SMSF loan application taking into account gearing based on the market value of the underlying asset, the size of the fund’s deposit, the rental yield and the ability of the SMSF to repay the loan. The lender’s risk is considered to be higher in relation to lending to an SMSF vs lending to an individual or a business as the SIS laws and regulations restrict the ability of cash being pumped into a SMSF if liquidity becomes an issue.

The ability of the members to contribute to the fund and how close the members are to retirement will impact on the fund’s ability to service the loan.

Please refer to our resource’s page for details on SMSF Borrowing

What effect does a Related Party SMSF Loan have on a LVR?

Loan-to-Value Ratio A related party loan must be at arm’s length. The LVR must reflect a commercial arrangement or come within the ATO ‘safe harbour’ guidelines.

The Australian Taxation Office (ATO) have provided guidance on what they will accept as being the terms and conditions of a related party loan in relation to residential or commercial property and stock exchange listed shares or units. The guidelines are a safe harbour for SMSF trustees who can have confidence that the non-arm’s length income (NALI) tax provision will not apply to the LRBA if the loan is structured accordingly.

Under the ATO guidelines the maximum LVR acceptable for property is 70% and for listed shares or units it is 50%.

Departing from SMSFs ‘Safe Harbour’ Terms

This does not mean the superannuation fund automatically fails the NALI provisions. What it does mean is documentary evidence required to demonstrate that a related party loan is at arm’s length must be obtained to support the terms and conditions. The best evidence is the documentation obtained from a lending institution approving a SMSF loan and then mirror those terms and conditions in the related party loan documentation. Merely obtaining the institution’s terms on their website or other documents is not sufficient.

The terms and conditions of a related party loan will not pass the arm’s length test if a bank or a second-tier lender would never have lent you the money in the first place.

Seeking Expert Advice to Optimise Your Loan Strategy and Interest Rates

It is crucial to seek expert advice in relation to a SMSF loan strategy. As there are a lot of SMSF lenders populating the marketplace a trustee must ensure what is being offered does comply with the SIS legislation and regulations. A SMSF Specialist or Financial Adviser can help with strategies to optimise the SMSF loan structure to lower the LVR by maximising the deposit which reduces the risk and lenders may then offer lower interest rates. Other considerations include ensuring rent returns cover the mortgage repayments, members are able to contribute to the fund and having other assets which can be easily liquidated.