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Calculate the annual costs and required returns to make a Self-Managed Super Fund worthwhile in Australia. Compare SMSF fees against retail and industry fund alternatives.
Running an SMSF costs between $2,500 and $5,000 per year in administration fees alone, before accounting for audit costs, tax agent fees, and investment expenses. This calculator helps you determine whether your fund balance is large enough to justify those fixed costs against what you would pay inside a retail or industry super fund. The breakeven balance is where your SMSF's total annual cost equals what an equivalent MySuper or retail fund would charge as a percentage of assets. Below that threshold, the percentage-based fees at a mainstream fund work out cheaper. Above it, SMSF costs become proportionally lower as the fixed charges spread across a larger asset base.
ASIC and most financial advisers suggest a minimum balance of $200,000 to $500,000 for an SMSF to be cost-effective. Below $200,000, fixed annual costs typically exceed what you would pay at a low-cost industry fund.
The main recurring costs are the ASIC supervisory levy (currently $259), an independent audit ($300 to $1,500), accounting and tax agent fees ($1,000 to $3,000), and any investment platform or adviser fees. Total annual costs typically range from $2,500 to $5,000 for a straightforward fund.
Your SMSF investments must outperform a comparable MySuper or retail fund after all costs. If your fixed costs add the equivalent of 0.5% per year and the comparison fund charges 0.7%, you need at least 0.5% better investment performance to break even after all fees.
Yes. SMSF costs are mostly fixed, so the cost-per-dollar falls as your balance grows. Retail and industry fund fees are percentage-based, so they scale with your balance. That is why there is a crossover point where SMSF becomes more cost-effective than managed funds.
Have more questions? These calculators provide estimates for educational purposes only. For personalized financial advice, consult with a qualified financial professional. See our disclaimer for more information.
A typical scenario using default values
{
"salary": 80000,
"sg_rate": 11,
"years": 30,
"return_rate": 7
}