Setting up an SMSF in Australia typically costs between $1,500 and $3,500 through a professional provider – covering the trust deed (around $300-600), ASIC registration of a corporate trustee ($611 in 2025-26) and the establishment paperwork. Running the fund then costs most trustees $2,000-5,000 a year, made up of administration and accounting fees, the independent audit (median fee $550), the ATO supervisory levy of $259 and the ASIC annual review fee of $67 for a special purpose trustee company. New funds pay the supervisory levy twice in their first year ($518). Here is the full breakdown, line by line.

Last reviewed June 2026. ASIC fees are indexed each 1 July, so the 2025-26 figures quoted here will change slightly from 1 July 2026.

What You Pay to Establish an SMSF

An SMSF is a trust, so establishing one means creating a trust deed, appointing trustees, registering with the ATO and opening a bank account in the fund’s name. The costs fall into a small number of buckets.

Establishment cost Typical amount Notes
Trust deed $300 – $600 Professionally prepared deed from a specialist provider. Avoid generic templates – the deed governs everything the fund can do.
Corporate trustee – ASIC registration $611 ASIC fee to register a proprietary company (2025-26). One-off.
Corporate trustee – company constitution and setup $200 – $600 Documents for a sole purpose trustee company, usually bundled with the deed.
ATO registrations (ABN, TFN, regulated fund election) Usually included No ATO fee, but the registration must be done correctly – the ATO reviews new funds before they appear on Super Fund Lookup.
Typical all-in professional setup $1,500 – $3,500 More where personal financial advice on the establishment decision is included.

Two things worth knowing about these numbers. First, establishment costs are capital in nature, so the fund generally cannot deduct them against its income. Second, the corporate trustee is optional – members can act as individual trustees instead and save the company costs – but for most funds the company is worth it. A corporate trustee simplifies admin when members join or leave, keeps fund assets clearly separated, and if the ATO ever imposes administrative penalties they apply once to the company rather than once per individual trustee.

Individual vs Corporate Trustee: the Cost Difference

Individual trustees cost nothing to appoint, while a corporate trustee costs roughly $800-1,200 upfront (ASIC registration plus documents) and a small ongoing fee. The ongoing fee is the part people get wrong: a company that acts solely as an SMSF trustee qualifies as a special purpose company with ASIC, which cuts the annual review fee to $67 (2025-26) instead of the standard several hundred dollars. ASIC also lets you prepay 10 years of review fees at a discount – $463 in 2025-26. If your trustee company is paying the full annual review fee, check its special purpose status.

Ongoing Annual Costs of Running an SMSF

The establishment cost is a one-off. The numbers that actually determine whether an SMSF makes financial sense are the recurring ones.

Annual cost Typical amount Notes
Administration, accounts and annual return $1,500 – $3,500+ Financial statements, member statements, SMSF annual return. Higher for property, LRBAs or pension funds requiring actuarial certificates.
Independent audit $350 – $900 Required every year. The ATO’s statistics put the median audit fee at $550. See our guide to SMSF audit requirements.
ATO supervisory levy $259 Paid with the annual return. New funds pay $518 with their first return – the current year plus the next year in advance.
ASIC annual review fee (corporate trustee) $67 Special purpose company rate, 2025-26.
Investment, advice and insurance costs Varies Brokerage, platform fees, financial advice, life insurance premiums for members held through the fund.

The ATO’s most recent statistical overview puts the median operating expense for an SMSF at $4,553 a year for 2023-24 (the average is higher, at $7,271, because very large funds skew it; counting investment, insurance and borrowing costs as well, median total expenses were $9,874). A straightforward fund with listed investments and a clean set of records sits comfortably below the median; funds holding property with borrowings sit above it.

The Break-Even Question: When Do the Costs Make Sense?

SMSF costs are mostly fixed – the audit, the levy and the accounting cost broadly the same whether the fund holds $150,000 or $1.5 million. An APRA-regulated fund charges mostly percentage-based fees instead. That single difference drives the break-even arithmetic:

  • On a $100,000 balance, $3,000 of fixed annual costs is 3% – a serious drag that an industry fund (typically under 1%) beats easily.
  • On a $400,000 balance, the same $3,000 is 0.75% – already competitive with most APRA fund fee structures.
  • On $1 million+, fixed costs often work out cheaper than percentage fees, sometimes substantially.

Research by the University of Adelaide for the SMSF Association (2022) found SMSFs with balances of $200,000 or more achieved investment returns competitive with APRA-regulated funds, while Moneysmart warns that SMSFs can cost more than retail and industry funds and that trustees spend on average more than 8 hours a month running them. Cost is only one part of the decision – control, investment choice and responsibility matter too. We walk through the full comparison, including who should not have an SMSF, in SMSF vs industry fund: which is right for you?

Keeping SMSF Costs Predictable

The biggest cost variable is not the levy or the audit – it is what happens when the fund’s records are messy. Late lodgement triggers penalties, a fund whose annual return is more than two weeks overdue is flagged on Super Fund Lookup and cannot receive employer contributions or rollovers, and compliance breaches can cost tens of thousands in administrative penalties. Clean administration is the cheapest compliance strategy there is.

Prime Partners provides fixed-fee SMSF administration, accounting and tax services from our North Sydney and Orange offices – annual accounts, the SMSF annual return, audit coordination with an independent auditor, and trustee support throughout the year, with the fee agreed before the work starts. If you are weighing up whether an SMSF stacks up at your balance, or want your existing fund administered properly, talk to us before 30 June – and if your balance is heading towards $3 million, note that the new Division 296 tax starts on 1 July 2026.

Frequently Asked Questions

How much does it cost to set up an SMSF in Australia?
A professional SMSF establishment typically costs $1,500 to $3,500, covering the trust deed (around $300-600), ASIC registration of a corporate trustee ($611 in 2025-26) and the ATO registrations. Setting up with individual trustees instead of a company is cheaper upfront but loses the administrative and penalty advantages of a corporate trustee.
What is the ATO supervisory levy and how much is it?
The supervisory levy is an annual amount every SMSF pays the ATO with its annual return. It is $259 per year and has been unchanged since 2014-15. Newly registered funds pay $518 with their first annual return – the levy for the registration year plus the following year in advance – even if the fund was only registered part-way through the year.
Are SMSF setup costs tax deductible?
Generally no. Establishment costs such as the trust deed and trustee company registration are capital in nature, so the fund cannot deduct them against its income. Ongoing costs – administration fees, the audit fee, the supervisory levy and investment expenses related to producing assessable income – are generally deductible to the fund.
How much does an SMSF cost to run each year?
The ATO’s 2023-24 statistics put the median annual operating expense at $4,553. A simple fund with listed investments typically pays $2,000-4,000 covering administration, the audit (median fee $550), the $259 supervisory levy and the $67 ASIC special purpose company review fee. Funds holding property or borrowings usually pay more.
What balance do I need for an SMSF to be cost effective?
There is no legal minimum, and ASIC removed its previous $500,000 guidance threshold in December 2022. Because SMSF costs are largely fixed, they bite harder on small balances – Rice Warner’s Cost of Operating SMSFs 2020 report, commissioned by the SMSF Association, found funds become cost-competitive with industry and retail funds from around $200,000. Suitability also depends on time, capability and the investments you actually plan to hold.
Is a corporate trustee worth the extra cost?
For most funds, yes. It costs roughly $800-1,200 to establish and $67 a year in ASIC fees (2025-26 special purpose rate), but it simplifies asset ownership, makes member changes far easier, and means any ATO administrative penalty applies once to the company rather than separately to each individual trustee.