SMSF setup/ongoing costs...

Tubs

Not only would the deed need to contain a wording to this effect but more importantly you would also need to have a signed Risk Management Statement in place.

CFD's according to the SISA are not able to be held within your SMSF.
 
The SMSF Myths...

Hi everyone,

Here's a link which describes a SMSF service with no establishment costs and annual fixed costs of $685 (?including audit costs). So 3.4% pa on 20k, or 1.4% pa on 50k.

http://www.pig.com.au/2006/04/200000-smsf-myth.php

And another one, here for $495 for setup and $685 pa for compliance and audit costs (also Geoff, they have an audit only service for $275):

http://www.smsfsolutions.com/3.html

These two options I think would make it not unreasonable, cost wise, to start a SMSF at 20k or 50k, or perhaps around 70k would be more ideal (so a 1 % pa cost).

Has anyone used this sort of low-cost service, they do the compliance and audit, and you focus on the investing side of things? - sounds good to me.

Does anyone know of other low-cost providers of compliance + audit services for SMSF's???

I feel that the sooner you can take control of your super funds the better, at least this way you can use this money to learn and develop you investing ability over time.

GSJ
 
Last edited:
Hi GSJ,

I have had an SMSF for 8 years or so.

I pay $860.00 per year for all returns, minutes, audit etc etc

Most accts have software that automatically pump out the required paperwork, they just feed in the numbers.

Shop around though, some accts are a lot more expensive than others and naturally, it will depend on how complicated your return is too.
 
Thanks Macca,

So far, in terms of ongoing compliance + audit costs, these are some low-cost options:

1. Web Superfund: ~ $400 pa (but you do compliance bit yourself using a computer software programme)
2. Nicholas Needham: $685 pa
3. SMSF Solutions: $685 pa
4. Macca's people: $860 pa

GSJ
 
Last edited:
Hi everyone,

Just wondering if any accountants here have any comments on the low fees quoted here, most people seem to generally quote > $1000 pa for SMSF compliance + audit costs...?

GSJ
 
BUMP!

I just wanted to add this post on here from another thread for my own future reference:

http://www.somersoft.com/forums/showthread.php?p=518599#post518599

austini said:
I have done research on this as I will need to move our SMSF administration to another provider next financial year.

Based on research and references from others I wil be using SuperEasy who administer over 2000 SMSFs:

http://www.supereasy.com.au/welcome....FSAUagodhhxU4A

"SETUP: With the purchase of the set up of the Self Managed Superannuation Fund, SuperEasy® provides all the documentation necessary for the establishment of the complying fund, according to the legislative requirements. Cost $345."

http://www.supereasy.com.au/welcome....FSAUagodhhxU4A

"ADMINISTRATION: SuperEasy® offers a Fixed Fee of $1,195 for the Self Managed Superannuation Fund (SMSF) Annual Administration. The fee is based on 15 different Australian investments with no limit on number of transactions in the SMSF and irrespective of the size of the fund. The same price applies irrelevant of the number of members in the fund, with a corporate or non-corporate trustee. Each additional "Australian Investment" is charged $44.00, GST inclusive, regardless of the number of transactions per that investment. The service includes preparation of the accounts, audit, tax return and lodgement with the ATO."

http://www.supereasy.com.au/welcome....FSAUagodhhxU4A

They are not the cheapest but certainly MUCH cheaper than some of the more publicised and/or institutional backed providers. I also spoke with the owner and found her excellent to deal with.

The cheapest providers tend to require you to use a particular online broker, bank accounts etc. Hence they are somewhat using a commissioned based price model. Supereasy does not have any such limitations/restrictions.

I would never use a provider who charges for the "amount" of funds held by the SMSF. There is often a minimal charge (but maybe not minimal in amount) and if you exceed a certain number of investments there may also be additional fees. This is a rip-off in my view. We have substantial funds invested in our SMSF but there are minimal assets because of the use of LICs and ETFs. So for us charging for the number of investments is much fairer.

There is a review of various providers in the latest Smart Investor magazine.

Cheers - Gordon
PS: I receive no benefit for offering the above information - it is merely the result of research on my part for our own circumstances
Click to expand...

And if anyone else has other low-cost SMSF options, please add it to this thread.

I have still not set up a SMSF by the way, but may do so in the coming year...
 
I set up my SMSF with Superhelp for free of charge and annual audit fee is $750 , this is myfirst year so haven't gone through any problems
MJ
 
JIT said:
Hi everyone,

Here's a link which describes a SMSF service with no establishment costs and annual fixed costs of $685 (?including audit costs). So 3.4% pa on 20k, or 1.4% pa on 50k.

http://www.pig.com.au/2006/04/200000-smsf-myth.php

And another one, here for $495 for setup and $685 pa for compliance and audit costs (also Geoff, they have an audit only service for $275):

http://www.smsfsolutions.com/3.html

These two options I think would make it not unreasonable, cost wise, to start a SMSF at 20k or 50k, or perhaps around 70k would be more ideal (so a 1 % pa cost).

Has anyone used this sort of low-cost service, they do the compliance and audit, and you focus on the investing side of things? - sounds good to me.

Does anyone know of other low-cost providers of compliance + audit services for SMSF's???

I feel that the sooner you can take control of your super funds the better, at least this way you can use this money to learn and develop you investing ability over time.

GSJ
Click to expand...

GST,

Thank you for sharing. I could not access those websites you mentioned. I am very eagar to set up one.
 
Costs me $275 for audit plus $150 ATO levy.

I manage my own - the whole idea behind SMSF.

I have Accountant colleagues who are too "busy" (i.e. lazy) to manage their own SMSF and so they pay somebody about $1500 pa to do what they should be doing.

This puts up the minimum balance somewhat to make it viable !!!

Cheers,

Rob
 
Rob G. said:
Costs me $275 for audit plus $150 ATO levy.

I manage my own - the whole idea behind SMSF.
Click to expand...

Exactly...let's not forget what the SM in SMSF stands for!

However, $275 for the audit is remarkably cheap, even with the cleanest set of records possible - mates' rates?
 
In my experience you get whay you pay for with the administration services. If you are familiar with the law and accounting concepts then you may not need an administrator, otherwise I use these groups:

http://www.cavendishsuper.com/index.php
http://www.superconcepts.com.au/

Be careful with the restrictions on investments with eSuper. Property presents a compelling investment in a SMSF. You want to make sure that your Trust Deed enables you to use the Installment Warrant features as amended in September 2007 to enable borrowing in super. For more information read the article "Why not own property in a SMSF?" http://www.apexpartners.com.au/arti...ion/why_not_own_property_through_a_smsf_.html

Ryan Love
Director
Apex Partners
 
Jonathon said:
However, $275 for the audit is remarkably cheap, even with the cleanest set of records possible - mates' rates?
Click to expand...

Extremely clean concise records on simple benign arm's length transactions.

All source documents accompany visit.

Wear worn out scruffy clothes.

Cheers,

Rob
 
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