The most important thing to understand about SMSF costs is that most of them are fixed — they cost roughly the same whether your fund holds $150,000 or $1.5 million. Large industry and retail funds charge a percentage of your balance, so their fees scale down (in dollar terms) when your balance is small. An SMSF flips that: the accountant, the auditor and the ATO charge much the same regardless of size. That single fact drives the whole “is an SMSF worth it?” question.
This guide breaks SMSF costs into setup versus ongoing, gives a realistic cost table, and explains the balance at which the numbers start to favour a fund. It pairs closely with how much you need to start an SMSF and the comparison in SMSF vs industry super; for the bigger picture, see the pillar guide to self-managed super funds.
Setup costs (one-off)
Establishing a fund involves a few one-off costs:
- Trust deed — a professionally prepared deed.
- Corporate trustee (optional) — if you set up a company to act as trustee, there is a one-off ASIC company registration fee. Skipping this saves money now but often costs more later; see corporate vs individual trustee.
- Establishment/advice — if an accountant, adviser or SMSF administrator handles the setup for you.
Setup is usually a modest, one-time amount. The costs that really matter are the ones you pay every year.
Ongoing annual costs
These recur for the life of the fund:
- Accounting and administration — preparing financial statements, member statements and the annual return, plus keeping records. This is usually the largest single cost and varies a lot depending on whether you use a low-cost online administrator or a full-service accountant.
- Independent audit — every SMSF must be audited each year by an approved SMSF auditor before it lodges. This is a legal requirement, not optional; see SMSF audit requirements.
- ATO supervisory levy — a flat annual levy the fund pays with its return.
- ASIC annual review fee — only if you have a corporate trustee (a special-purpose company fee, lower than a standard company).
- Investment costs — brokerage, ETF/managed fund fees, platform fees and, if you hold property, property expenses. These depend entirely on what you invest in.
- Optional adviser/actuarial fees — financial advice, or an actuarial certificate if the fund pays a pension while also holding accumulation assets.
Indicative cost table
Actual figures vary widely by provider and complexity, so treat the ranges below as indicative rather than quotes. Check current levy and ASIC amounts at ato.gov.au and asic.gov.au.
| Cost item | When | Typical nature |
|---|---|---|
| Trust deed | One-off setup | Fixed, modest |
| Company registration (corporate trustee) | One-off setup | Fixed, optional |
| Accounting & administration | Annual | Fixed-ish; largest cost |
| Independent audit | Annual | Fixed, mandatory |
| ATO supervisory levy | Annual | Flat statutory amount |
| ASIC review fee | Annual | Only with corporate trustee |
| Brokerage / fund fees | As you invest | Variable with activity |
| Actuarial certificate | Annual (if applicable) | Only in certain pension setups |
The key point is that a meaningful chunk of these costs — accounting, audit, levy — is effectively fixed. That fixed base is what you compare against the percentage-based fees of a big fund.
When an SMSF becomes worthwhile
Because the costs are largely fixed, an SMSF becomes cost-competitive once the fixed dollar cost of running the fund is lower, as a percentage of the balance, than the percentage fees a comparable large fund would charge. On a small balance, fixed costs can be a punishing percentage; on a larger balance, they shrink towards a fraction of a percent.
A simple way to think about it: divide your expected annual running costs by your fund balance to get an effective fee rate, then compare that to what an industry fund would charge on the same balance.
- On a $100,000 balance, a few thousand dollars of fixed costs is a high effective fee.
- On a $400,000+ balance, the same fixed costs become competitive with, or cheaper than, a percentage-based fund.
This is why ASIC and industry commentary often point to balances around $200,000 and above as the zone where an SMSF starts to stack up — but that is guidance, not a legal minimum, and it depends on your costs and how actively you invest. We work through the maths in detail in how much you need to start an SMSF.
Costs are not the whole story
Money is only one cost. An SMSF also costs time — record-keeping, valuations, decisions and deadlines — and carries personal responsibility as trustee. Two funds with identical balances can have very different real costs depending on how much the trustees do themselves versus outsource. If you invest simply (a handful of ETFs), administration is cheaper than if you hold property, unlisted assets or run a limited recourse borrowing arrangement, which add complexity and cost.
How to keep costs down
- Invest simply where you can — a diversified ETF portfolio is cheaper to administer than a sprawling one.
- Use SuperStream and an ESA so contributions and rollovers flow electronically (essential anyway under Payday Super from 1 July 2026).
- Keep clean records year-round so your accountant is not reconstructing the year at return time.
- Right-size the trustee structure from the start to avoid re-titling costs later.
Common pitfalls
- Assuming an SMSF is “free” because you are doing it yourself — the audit and levy are unavoidable.
- Starting with a balance so small the fixed costs swamp returns.
- Choosing the cheapest administrator without checking what is actually included (some exclude the audit fee).
- Forgetting the ASIC annual fee that comes with a corporate trustee.
Once you understand the cost base, the natural next questions are whether your balance justifies it — see how much you need to start an SMSF — and how it compares to staying in a big fund, covered in SMSF vs industry super.
This article is general information only and not financial or tax advice; consider your own circumstances and speak to a licensed adviser or the ATO before acting.