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SMSF

Higher costs, lower returns

Independent research

Recent Australian Tax Office research has shown that SMSF returns are often a lot less than public offer super fund returns, while the administration and management costs can be a lot more*.

  2013-14 2014-15
Returns - SMSF 5.9% 2.5%
Returns – Statewide Super 15.0% 11.5%
Costs – SMSF N/A 2.9%
Costs – Statewide Super N/A  0.8%

Figures are averages for members with $200,000-$500,000 in their super.
*Source - ATO

Why do SMSFs cost so much?

At a minimum, your SMSF must pay for:
  • Annual reporting
  • Annual, independent auditing and;
  • The supervisory levy.

Other costs you may need to consider include:

  • Specialist financial advice
  • Asset valuations
  • Legal fees associated with your Trust Deed
  • Insurance.

The work involved

If you are a trustee, then it’s your responsibility to ensure your fund complies with the complex tax and super legislation. There are heavy penalties for failing to comply – even if you do so unintentionally.

There are also strict record-keeping obligations to follow, such as annual reporting, asset valuations and appointment of auditors.

Remember, it’s your money and your retirement future, so you don’t want to leave the investment decisions to chance.

To maximise your SMSF investments, it’s important to keep fully up-to-date with investment news, tax and superannuation law, and the returns on your current investments. Naturally, this all takes time.

Do you and/or your partner have the time, expertise and interest to run an SMSF?

We’ve found that as people age; time and energy is more often directed to enjoying life rather than worrying about investments. It is also common for one member of a couple to be more confident/conversant with their finances, so they start to worry that their partner may not have the interest or knowledge to continue an SMSF on their passing.  If this sounds familiar, we suggest you chat with a Statewide Super Financial Planner or a Statewide Super Accredited Financial Adviser who can discuss your situation and help determine what is most appropriate.

Is your SMSF no longer working for you?

Statewide Super can take the hard work out of winding up your SMSF and can assist with all legal requirements including selling down assets, statutory accounts and tax lodgements. Our Financial Planners can also provide advice on appropriate superannuation options to help you make the most of your money.

Make an appointment with a financial planner today
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  • Important information

    Statewide Super holds an Australian Financial Services Licence (AFSL) that allows it to provide general and personal financial advice. Statewide Super Financial Planners are employees and Authorised Representatives of Statewide Super, who is responsible for any advice given to you by them.

    Statewide Super also has an accredited network of financial advisers (“Accredited Advisers”) based locally and regionally. Advice provided to you by these Accredited Advisers will be provided under the AFSL held by a third party. That third party is responsible for the financial advice given to you by an Accredited Adviser.

    For further information and a copy of the applicable Statewide Super Financial Services Guide (FSG), visit www.statewide.com.au or call 1300 65 18 65. A copy of the relevant FSG for an Accredited Adviser can be obtained by contacting the Accredited Adviser directly.