The cost of an SMSF can vary widely and is mainly a function of the advice and assistance required from service providers, the composition of the investment portfolio and how often the portfolio is traded. 

Many of the costs to operate an SMSF are fixed regardless of the account balance. This may make it uneconomical to run an SMSF with a low balance. 

Several views exist as to how much funds are required to make a SMSF economical.  Research conducted by the SMSF Association in conjunction with the University of Adelaide’s International Centre for Financial Services (ICFS) found SMSF’s with balances of around $200,000, on average, perform and charged fees on a similar basis to other types of super funds. On the other hand, the Productivity Commission in its 2019 report ‘Superannuation: Assessing efficiency and competitiveness’ found that on average, SMSF’s have lower returns after expenses and tax compared to APRA-regulated funds with balances below $500,000. Whilst there is no consensus view, this provides you with a guide to help determine the feasibility of setting up your own SMSF. Research has suggested that the amount of funds required should be higher for funds that actively trade and invest in several different assets (for example, an SMSF that has $1m in a term deposit only will be significantly cheaper to operate than another fund which invests its $1m in property, shares, overseas assets and has an LBRA in place).

Some people find the fees they pay for their SMSF are more than they would have paid in another type of super fund. It’s important to work out how much it will cost and compare it with fees being charged by other types of funds.