Introduction
Thinking about setting up your own super fund? You’re not the only one. Thousands of Australians are exploring Self-Managed Super Funds (SMSFs) in 2025 to take control of their retirement savings. But before you jump in, it’s important to know one thing upfront: SMSF setup costs.
The cost of starting an SMSF can be higher than many expect, with both one-time and ongoing expenses involved. Understanding these costs helps you decide whether an SMSF is financially worthwhile for your situation. In this guide, we’ll walk through all the fees — from ATO charges to professional advice — so you can make an informed choice.
What is an SMSF?
An SMSF is a private superannuation fund that you manage yourself. It can have up to six members, often family members or business partners. Unlike retail or industry super funds, you decide where the money is invested — whether it’s property, shares, managed funds, or even term deposits.
With that freedom comes responsibility. As a trustee, you’re in charge of compliance, reporting, and making sure the fund operates within Australian Taxation Office (ATO) rules. That’s why the cost of SMSF setup isn’t just about getting started — it’s about maintaining compliance long term.
See more: Find the Best Financial Advisor in Sydney for Retirement Planning
Breakdown of SMSF Setup Costs in 2025
1. ATO SMSF Fees
Every SMSF must pay the ATO supervisory levy. In 2025, this levy is $259 per year, payable with your first annual return. It’s a non-negotiable cost for all trustees.
2. Professional Setup Fees
If you engage an accountant, financial adviser, or SMSF specialist to establish your fund, expect to pay between $1,000 and $3,000. This usually covers:
- Preparing the trust deed
- Registering the SMSF with the ATO
- Applying for ABN and TFN
- Setting up a bank account for the fund
3. Legal Costs
The trust deed is the legal backbone of your SMSF. A professionally drafted deed can cost $300 to $700, depending on complexity. If you update the deed later (for rule changes or estate planning needs), extra costs may apply.
4. Audit Fees
All SMSFs must be independently audited every year. Audit fees range from $300 to $600 annually, depending on the fund’s size and complexity.
5. Additional Administrative Costs
You may also encounter:
- Actuarial certificates (for funds running both pension and accumulation accounts) — around $100–$300.
- Bank account setup fees — some banks charge small admin fees.
- Investment platform fees — if you use online investment services.
Hidden or Unexpected Costs to Watch Out For
While the main fees are straightforward, there are extra expenses many trustees don’t see coming:
- Investment costs: Brokerage on shares, property management fees, or loan costs if the fund borrows.
- Insurance premiums: Life or income protection policies inside your SMSF add to ongoing costs.
- Compliance penalties: Mistakes in record-keeping or breaches of ATO rules can result in fines running into thousands of dollars.
These hidden costs highlight why professional guidance is often worth the extra money.
Ongoing Costs vs One-Time Setup Fees
It’s important to separate one-time SMSF setup fees from the ongoing expenses you’ll face each year.
- One-time setup fees: Trust deed preparation, professional setup services, and registration with the ATO. These usually add up to $1,500–$3,500.
- Ongoing costs: Annual ATO levy, accounting, audits, financial advice, and investment-related costs. Expect $2,000–$5,000 per year.
This means SMSFs only make financial sense for people with larger super balances. A common rule of thumb is that SMSFs are cost-effective with $200,000 or more.
SMSF Setup Cost Comparison: DIY vs Professional Services
DIY Setup
Some trustees try to cut costs by setting up their SMSF online, with fees as low as $600–$1,000. While cheaper upfront, this approach is risky. Errors in the trust deed or registration process can cause compliance issues later.
Professional Setup
Hiring an accountant or SMSF specialist costs more — typically $2,000–$3,000 upfront. But you gain peace of mind knowing your fund is correctly structured and compliant from the start. For most Australians, this is the smarter option.
Is the Cost Worth It? (Benefits vs Expenses)
So, is paying these SMSF setup costs worth it? The answer depends on your situation.
Benefits of SMSFs:
- Greater control over investments
- Access to asset classes not available in retail funds (like direct property)
- Potential estate planning advantages
- Ability to pool family assets
Downsides:
- Higher running costs compared to industry or retail funds (especially with smaller balances)
- Time and effort required to manage compliance
- Risk of penalties if rules are broken
For many Australians with balances above $200,000, the benefits can outweigh the costs. But for smaller balances, the expenses may erode returns.
How to Reduce SMSF Setup Costs Without Breaking Compliance
Here are some smart ways to keep costs down:
- Compare providers: Some firms offer bundled setup, accounting, and audit services at discounted rates.
- Use digital platforms: Online SMSF administration services can reduce costs while maintaining compliance.
- Handle simple admin yourself: Doing basic paperwork can save money, but always leave audits and tax returns to licensed professionals.
- Stay compliant: Avoiding ATO fines is the biggest money saver of all.
FAQs About SMSF Setup Costs in 2025
1. How much does it cost to set up an SMSF in 2025?
Expect $1,500–$3,500 for professional setup, plus ongoing costs of $2,000–$5,000 each year.
2. What is the minimum balance for an SMSF to be worthwhile?
Most experts recommend at least $200,000, otherwise costs can outweigh the benefits.
3. Do I pay ATO fees every year?
Yes, the $259 supervisory levy is an annual cost for all SMSFs.
4. Can I set up an SMSF myself?
Yes, but it’s risky. DIY setup is cheaper, but mistakes can lead to costly compliance issues.
5. Are SMSF audits included in setup fees?
No, audits are ongoing yearly costs, typically $300–$600 per year.
Final Thoughts / Key Takeaways
Setting up an SMSF in 2025 gives Australians more control over retirement savings, but it comes at a price. SMSF setup costs include one-time establishment fees and ongoing yearly expenses that can easily total several thousand dollars.
Before starting, consider your super balance, long-term goals, and whether you’re comfortable handling trustee responsibilities. For most people, professional help is worth the cost to ensure compliance and reduce stress.
💡 Thinking of starting your own SMSF? Compare setup options, speak with an accountant, and make sure the numbers stack up before making the leap.
