How much does an SMSF cost?

Of course, one of the many things to think about when considering starting an SMSF (or anything for that matter), are the costs of doing so.

Due to the way the costs and fees are charged within a large superannuation fund, compared to within an SMSF, the difference in costs can be quite considerable. Therefore, comparing these costs to what your costs would be if you were to retain your benefits in a large superannuation fund, is a great place to start.

So, what’s the difference in the way the fees are charged?

For SMSFs, the various costs are more likely to be fixed, whereas larger superannuation funds generally charge using percentage based fees and these increase in line with the level of benefits within your fund.

There is of course also a cost associated with the time you spend running your own fund and this will depend on how much you do yourself and how much you outsource to a professional.