SMSF Setup Costs Explained: What You’ll Pay in 2025

Introduction

Thinking about taking control of your retirement savings? You’re not alone. More Australians are setting up Self-Managed Super Funds (SMSFs) in 2025 to gain flexibility and direct investment choice. But before diving in, one of the most important things to understand is the cost.

SMSF setup costs can vary widely depending on whether you go the DIY route or use professional services. These costs can have a big impact on whether an SMSF is the right choice for you. This article breaks down the fees, hidden charges, and ongoing expenses so you know exactly what to expect in 2025.

What is an SMSF?

An SMSF is a private superannuation fund that you manage yourself, usually with up to six members (often family members or business partners). Unlike industry or retail super funds, you make the decisions about where your retirement money is invested — whether that’s shares, property, or other assets.

Running your own fund gives you flexibility, but it also comes with responsibilities. Trustees must follow strict Australian Taxation Office (ATO) rules and ensure the fund remains compliant. That’s why understanding the cost of SMSF setup is so important — it’s not just about the upfront fees, but also the ongoing work involved.

See more: Debt Recycling Explained: How to Turn Your Debts into Investments

Breakdown of SMSF Setup Costs in 2025

Setting up an SMSF involves several fees. Here’s what you’re likely to encounter:

1. ATO SMSF Fees

The ATO charges a $259 annual supervisory levy. This is paid when you lodge your fund’s first annual return and every year after. It ensures your fund is regulated and compliant.

2. Professional Setup Fees

If you use an accountant, financial adviser, or SMSF specialist, setup costs usually range from $1,000 to $3,000. This covers the trust deed, fund registration, and ABN/TFN applications.

3. Legal Costs

Your SMSF requires a trust deed, which sets out how the fund operates. Legal fees for preparing or reviewing this deed can cost $300 to $700, depending on complexity.

4. Audit Fees

Every SMSF must be independently audited each year. Audit fees typically cost $300 to $600.

5. Other Administrative Costs

Additional costs may include actuarial certificates (if you have both pension and accumulation accounts), bank account setup, and investment platform fees.

Hidden or Unexpected Costs to Watch Out For

Beyond the obvious fees, there are hidden costs that can catch new trustees off guard:

Investment-related costs: Brokerage fees, property management fees, or loan establishment fees if borrowing within the SMSF.
Insurance premiums: Many people forget to factor in life or income protection insurance inside their SMSF.
Penalties for non-compliance: The ATO can issue fines if you breach SMSF rules — these can cost thousands of dollars.

Knowing these in advance helps avoid budget shocks.

Ongoing Costs vs One-Time Setup Fees

It’s important to separate the one-time SMSF setup fees from ongoing yearly expenses.

One-time costs include establishing the trust deed, registering with the ATO, and professional setup assistance. These typically range from $1,500 to $3,500 in total.
Ongoing costs cover the ATO supervisory levy, annual audits, accounting, financial advice, and investment costs. These can average $2,000 to $5,000 per year depending on fund complexity.

This means that running an SMSF only makes financial sense if your balance is large enough to justify the costs — generally recommended at $200,000 or more.

SMSF Setup Cost Comparison: DIY vs Professional Services

DIY Setup

If you’re confident with legal documents and compliance, you could set up your SMSF online for as little as $600–$1,000. However, the risk of mistakes is high, and errors can be costly.

Professional Setup

Using an accountant or SMSF specialist may cost $2,000–$3,000 upfront, but you gain peace of mind and compliance support. This is the safer choice for most Australians, especially first-time trustees.

Is the Cost Worth It? (Benefits vs Expenses)

An SMSF isn’t the cheapest option, but it can be worthwhile if you want:

Greater investment flexibility (e.g., property, private assets).
Control over fees compared to large retail super funds.
Estate planning advantages for families.

However, if your balance is small, the ongoing SMSF expenses can eat into your returns. For balances under $200,000, sticking with an industry or retail super fund may be more cost-effective.

How to Reduce SMSF Setup Costs Without Breaking Compliance

Here are a few tips to save money:

Shop around for professional setup packages — some firms bundle trust deed, registration, and first-year audit at a discounted rate.
Go digital — many online SMSF platforms now offer cheaper administration and compliance tools.
Stay compliant — avoiding ATO fines is one of the best ways to save money in the long run.
Do some admin yourself — while still using professionals for audits and tax returns.

FAQs About SMSF Setup Costs in 2025

1. How much does it cost to set up an SMSF in 2025?
Expect between $1,500 and $3,500 for professional setup, plus ongoing costs of $2,000–$5,000 yearly.

2. What is the minimum balance for an SMSF to be cost-effective?
Generally, an SMSF only makes sense if your balance is around $200,000 or higher.

3. Do I have to pay ATO fees every year?
Yes, the $259 ATO supervisory levy is an annual cost for all SMSFs.

4. Can I set up an SMSF myself?
Yes, but it’s risky. DIY setup can cost under $1,000, but you’ll need to ensure full compliance with ATO rules.

5. Are SMSF audit costs included in the setup fee?
No, audits are an ongoing yearly cost, typically $300–$600 per year.

Final Thoughts / Key Takeaways

Setting up an SMSF in 2025 gives you control over your retirement savings, but it comes at a price. SMSF setup costs include ATO fees, professional fees, and ongoing expenses that can add up to several thousand dollars each year.

If you’re considering a self-managed super fund, weigh the benefits of flexibility and control against the costs and responsibilities. For many Australians, professional guidance is worth the investment to ensure compliance and peace of mind.

💡 Thinking of starting an SMSF? Compare setup packages, talk to an accountant, and make sure the costs align with your retirement goals before taking the plunge.