Based on the latest figures from the ATO the average self managed super fund fees are $3,934 per annum.
This is based on a median (mid-point) of operating expenses which an SMSF would incur including SMSF auditor fees, SMSF accounting fees, SMSF administration costs, ATO SMSF Supervisory Levy and other deductions relating to the annual running of an SMSF.
Most of these costs are SMSF accounting fees and SMSF audit fees. Learn more about the average SMSF fees here.
There are a number of differences if you were to compare Grow SMSF to many of the low cost online only service providers available. We recommend anyone comparing SMSF service providers look at the following as part of their research:
The above is not a comprehensive list. Take a look at our blog to find more specific information on comparing Grow SMSF to other service providers.
Learn more about our SMSF administration and accounting packages here.
SMSF fees and operating expenses that are incurred by an SMSF are mostly deductible under the general deduction provision (section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)) except to the extent they relate to the gaining of non-assessable income (such as exempt current pension income) or are capital in nature.
Common fees that an SMSF can claim a tax deduction for include:
Typically the SMSF fees payable to Grow SMSF will be tax deductible.
In addition to the fees quoted on this website, each SMSF has to pay statutory fees to the ATO and also ASIC each year.
The ATO charges a $259 annual SMSF supervisory levy which is paid when the SMSF pays its annual tax bill (or the amount comes off the tax refundable).
In addition, where an SMSF has a special purpose trustee company, it has to pay an annual company registration fee to ASIC. For the 2020-21 financial year this annual fee is $55 and it’s indexed each year on the 1st of July.
Where an SMSF uses a company trustee it’s recommended the annual ASIC fee is paid for 10 years in advance. The current cost of doing so is $383. Paying these fees in advance both ensures costs are reduced and removes the possibility of incurring late fees for that 10 year period.
Grow SMSF has built a customised SMSF fee calculator.
Our SMSF fee calculator enables you enter all the details of your fund including the types of accounts and investments and it will calculate your annual self managed super fund fees.
The SMSF fee calculator is useful as it can help identify areas where self managed super fund fees can be reduced and savings can be found.
With Grow SMSF self managed super fund fees can be determined both via our SMSF fee calculator our through one of our fixed fee administration packages.
The set up fees for a new SMSF are as follows:
Grow SMSF intentionally DOES NOT offer ‘FREE’ SMSF establishment to ensure we provide you with the best possible upfront support and service you deserve.
Learn more about setting up an SMSF here: SMSF setup
The average SMSF audit cost based on the ATOs 2017-18 statistics is $550. This average SMSF audit fee has not changed in in a number of years, despite the ATO increasing scrutiny of SMSF auditors including reviewing their competence and independence.
As the size of an SMSF increases, the independent audit fees also increase.
All Grow SMSF fee packages INCLUDE the annual independent audit which is carried out by leading SMSF auditor ASF Audits.
There are a number of different ways to look at this question.
If you look at it purely based on the SMSF fees, for many people, an SMSF may not be worthwhile unless the combined balance of all members (typically a couple) is at least $500,000.
The primary driver for most people to set up an SMSF is for control. An SMSF is the best way to have control over how your superannuation is invested as it provides maximum flexibility and transparency, especially over self managed super fund fees.
Lower cost SMSF administration opens SMSFs up to a greater number of people who want to take control of their superannuation investments.
When you use an industry or retail superannuation fund, built into their fees is both the administration cost as well as the investment management cost (although this can sometimes be difficult to see). With an SMSF the administration costs are going to be higher, however if you are a self-direct investor your investment management costs are lower as you are replacing the professional fund manager with yourself.
So are self managed super funds worth it? The answer comes down to whether how much value you put on control and transparency when it comes to how your super is invested.
SMSF establishment fees are not tax deductible to either the members of the SMSF or the SMSF itself. They are capital in nature and a tax deduction cannot be claimed regardless of who pays them.
The ATO has specifically said:
“We (being the ATO) consider formation costs (for example, cost of the trust deed to establish an SMSF) are of a capital nature regardless of who pays them. These are not deductible under tax law.
Also, unless the SMSF is conducting a business, there is no write-off under Business Related Costs of the Income Tax Act, and we consider the necessary business nexus is unlikely to be met because the primary purpose of a fund is to conduct it for retirement purposes rather than as a business.”
If a tax deduction is sought by the members, the fees in relation to the establishment of an SMSF may be claimed as a personal concessional where the member has paid the expense on behalf of the fund, not been re-imbursed and completes a notice of intent to claim form under s290-170 within the required time period.
In other words seek advice from a qualified tax account or get in touch with us!