Key Takeaways

  • SMSF fees beyond setup include the ATO supervisory levy, ASIC fees for corporate trustees, annual administration and audit fees, and Investment-related costs.
  • The ATO supervisory levy is $259 per year for continuing funds and $518 in the first year for new funds.
  • Corporate trustees pay an annual ASIC review fee, with a lower rate for special-purpose companies.
  • Investment fees and brokerage vary widely depending on strategy and platform.
  • Comparing total ongoing fees over five to ten years gives a clearer picture than focusing on setup alone.

Many Australians focus on SMSF setup costs and overlook the long list of SMSF fees beyond setup. While establishment is a one-off cost, ongoing fees can have a far bigger impact on long-term retirement balances. The ATO supervisory levy, ASIC fees for corporate trustees, audit fees and investment-related costs are all part of the picture. Understanding them is essential before deciding whether an SMSF makes financial sense.

This article explains the ongoing fees that apply to SMSFs in Australia and what trustees should consider before committing to a fund.

The ATO Supervisory Levy

The ATO supervisory levy funds the ATO’s role in regulating SMSFs. It is charged annually and paid as part of the SMSF annual return.

Key features include:

  • Current levy is $259 per year for continuing SMSFs.
  • New SMSFs typically pay $518 in their first year because the levy is paid one year in advance.
  • The levy must be paid even if the fund has no income or activity in the year.
  • Failure to pay can lead to general interest charges and other consequences.

The levy is small relative to other ongoing costs but should not be overlooked when budgeting.

ASIC Fees for Corporate Trustees

If an SMSF uses a corporate Trustee, the trustee company must be registered with ASIC. Fees include:

Initial registration fee

ASIC charges a fee for registering a new company. The fee is generally a few hundred dollars, and many SMSF providers pass this through as part of setup.

Annual review fee

Each year, the company must pay an ASIC annual review fee. The fee is lower for special-purpose companies whose sole role is to act as trustee of a regulated super fund, compared with standard companies. The exact amount is indexed each financial year.

Trustees should ensure that the company is registered correctly as a special-purpose company where applicable, to qualify for the lower fee.

Annual Administration and Accounting Fees

The largest ongoing cost for most SMSFs is administration and accounting. Services typically included are:

  • Preparation of financial statements.
  • Preparation of member statements.
  • Preparation of the SMSF annual return.
  • Reconciliation of contributions and rollovers.
  • Tax calculations and payments.
  • Coordination with the independent auditor.

Fees vary widely. Online providers may offer bundled administration and audit for $1,500 to $3,500 per year. Mid-tier providers can charge $3,000 to $5,000 or more. Complex funds with property, borrowing or multiple pensions can pay $6,000 or more.

Audit Fees

The annual audit is required by law and must be performed by an independent SMSF auditor registered with ASIC. Audit fees vary based on:

  • Complexity of investments.
  • Number of members and pensions.
  • Quality of the records provided.
  • Presence of property, borrowing or unusual transactions.

Audit fees are often several hundred dollars for straightforward funds and higher for complex ones. They are sometimes included in bundled administration fees and sometimes charged separately.

Investment Fees

Investment fees can take many forms.

Brokerage

Trading shares or ETFs through a broker incurs brokerage fees. These can be low for online Brokers and higher for traditional brokers.

Managed fund and ETF fees

Both managed funds and ETFs charge management fees as part of the product’s expenses. These reduce returns and should be reviewed regularly.

Platform fees

If the SMSF invests through an investment platform, platform fees may apply.

Property costs

Direct property investment involves rates, insurance, repairs, property management and other costs.

Bank fees

Some SMSF bank accounts charge monthly fees, while others are free. Trustees should select accounts that are SMSF-friendly and avoid unnecessary charges.

Investment fees are highly strategy-dependent and can have a large impact on net returns.

Advice Fees

Advice fees apply where the SMSF uses a licensed financial adviser. Models include:

  • Fixed fees for a Statement of Advice or annual review.
  • Hourly rates for ad-hoc work.
  • Asset-based fees, typically a percentage of fund value.

Advice is optional but often valuable for managing the complexity of an SMSF over time.

Other Possible Fees

A range of other fees may apply at various points, including:

  • Trust deed updates when super law changes.
  • Actuarial certificates for funds paying account-based pensions where required.
  • Property valuations.
  • Specialist advice on limited recourse borrowing arrangements.
  • Legal fees for unusual situations.

While many of these are not annual costs, they can still affect total expense.

Why It Matters

Ongoing fees compound over time. Even seemingly small differences can affect the final retirement balance significantly. Understanding the full picture of SMSF fees beyond setup helps trustees:

  • Compare SMSFs with other super Options on an apples-to-apples basis.
  • Budget realistically for the future.
  • Recognise unusual or unexpected charges.
  • Make informed decisions about service providers and strategies.

Moneysmart and the ATO have both stressed that prospective trustees should look at total long-term costs, not just headline setup pricing.

What Australians Should Know Before Acting

Before establishing or continuing an SMSF, Australians should:

  • Request a detailed fee schedule from each provider.
  • Project ongoing fees over five and ten years.
  • Compare fees against likely fund returns to assess net outcomes.
  • Compare the total cost with the projected fees of suitable APRA-regulated super alternatives.
  • Watch for any “additional” or “out of scope” fees that could apply in normal circumstances.
  • Review fees periodically and ask the provider to justify increases.

These steps help ensure that SMSF fees remain reasonable and the fund stays cost-effective.