Independent Comparison Tool

SMSF or Industry Super — Which is Right for You? | MySuperChoices

An independent comparison tool for Australians weighing their retirement options. No ads, no commissions — just the facts.

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SMSFs in Australia
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Total super assets (2024)
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Typical SMSF annual cost
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Common break-even balance

How Do They Stack Up?

An objective look at the key differences across cost, control, compliance, and suitability.

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Dimension SMSF
Self-Managed Super Fund
Industry Fund
e.g. AustralianSuper, Hostplus
Who manages it
You
You are the trustee and bear all legal responsibility
Fund Trustees
Professional trustees manage compliance and investment decisions
Annual cost
Fixed ~$3,500–$6,000
Accounting, audit, ASIC fees; not tied to balance size
% of Balance ~0.4–1.2%
Scales with your balance; cheaper at low balances, expensive at high
Investment control
Full control
Choose any compliant investment — stocks, bonds, property, crypto
Limited menu
Predefined options; some funds offer member-directed options
Direct property
Yes
Can hold residential & commercial property (arm's length rules apply)
No
Cannot hold direct property; REITs available as an alternative
Insurance
Must arrange yourself
No default cover; may be harder or more expensive to obtain individually
Default cover included
Life, TPD, and income protection; group rates often cheaper
Compliance burden
High
Annual audit, ATO reporting, trustee obligations, ongoing legal duties
None for members
Trustees handle all regulatory and compliance obligations
Minimum viable balance
~$250K–$500K
ASIC recommends considering costs carefully below $500K
No minimum
Suitable from day one of employment
Regulator
ATO
Australian Taxation Office regulates SMSFs
APRA
Australian Prudential Regulation Authority
Ideal for
High-balance investors
High-balance savers, property investors, business owners wanting maximum control over their retirement assets
Most Australians
Most Australians — especially those building wealth, wanting simplicity, or relying on default insurance cover

Inside the SMSF Annual Cost

The headline figure of $3,500–$6,000/year is often quoted, but it's worth understanding exactly what drives that number — and where you can reduce it.

Typical annual all-in cost
$4,500
Median estimate for a 2-member, single-asset SMSF using an accountant
Individual vs Corporate Trustee: A corporate trustee (a Pty Ltd company acting as trustee) costs an extra $500–$1,500 upfront to set up, but provides better asset protection and simpler administration when members change. Most advisers recommend it for long-term SMSFs.
📊
Accountant / Administration
Tax return, financial statements, member reporting
$1,800–$3,000
🔍
Annual Independent Audit
Mandatory SMSF audit by a registered SMSF auditor
$300–$600
🏛️
ATO Supervisory Levy
Annual government levy for SMSF regulation
$259
📋
ASIC Annual Review Fee
If using a corporate trustee (recommended structure)
~$61
💼
Investment Platform / Brokerage
Share trading platform fees and per-trade brokerage
$100–$500
🛡️
Insurance Premiums
Life, TPD and income protection (if held inside SMSF)
$500–$2,000+

How Industry Fund Fees Compare

Combined annual fees (administration + investment) for popular Australian industry funds at different balance levels. Select a balance to compare.

Fund (Option) Annual Fee Fee % vs. Industry Avg Visual

⚠ Approximate combined fees based on publicly available 2023/24 Product Disclosure Statements. Actual fees vary by investment option, balance, and employer arrangements. Many funds also charge per-transaction fees. Always review the PDS before making any decision.

When Does an SMSF Start Paying Off?

See exactly when fixed SMSF costs become cheaper than a percentage-based industry fund fee — based on your numbers.

Your Details

Current super balance
Annual contributions
Industry fund fee rate
Estimated SMSF annual cost
Years to retirement
Average investment return

Annual Fee Comparison

SMSF annual cost
$4,500
Industry fund fee
$2,125

Break-Even Balance

$529,412
At this balance, SMSF and industry fund fees are equal
Verdict
Loading...

10-Year Cumulative Cost Projection

SMSF costs
Industry fund fees
SMSF
Industry

Which Option Suits You?

Answer 5 quick questions to get a personalised recommendation based on your situation.

Question 1 of 5
What is your current super balance?
Question 2 of 5
Do you want to invest in direct property through super?
Question 3 of 5
How many hours per month can you spend managing your super?
Question 4 of 5
Do you have existing insurance through your super fund you rely on?
Question 5 of 5
How would you describe your investment knowledge?
Based on your answers

Why this recommendation

    5 Questions to Ask Your Adviser

    If you're seriously considering an SMSF, bring these to your first meeting with a licensed financial adviser.

    01
    "At my current balance, what is the fee drag difference between an SMSF and my current fund over 10 years?"
    Many advisers will model this precisely using your actual balance, contributions, and the exact fees of both options. Insist on a dollar figure, not just percentages.
    02
    "What happens to my SMSF if I become incapacitated or die — and how does that compare to an industry fund?"
    Estate planning within an SMSF requires a binding death benefit nomination and can be complex. Industry funds have clearer default pathways for most members.
    03
    "Should I use an individual or corporate trustee structure — and what does each cost over 20 years?"
    Corporate trustees cost more upfront but simplify member changes, reduce asset transfer hassles, and provide better legal protection. The 20-year cost comparison often favours corporate.
    04
    "Can I replicate my existing super fund's insurance cover in an SMSF, and what will it cost me?"
    Group insurance through industry funds is often subsidised. Getting equivalent individual cover in an SMSF can cost 20–40% more and may exclude pre-existing conditions.
    05
    "What specific investment strategy am I trying to achieve that I cannot achieve in a top-performing industry fund?"
    The strongest case for an SMSF is a specific strategy unavailable elsewhere — direct property, unlisted assets, or complex tax planning. Without a clear answer here, review your rationale carefully.

    How Do Returns Actually Compare?

    Median annual returns for SMSF funds vs the median industry fund balanced option, 2015–2025. After costs. FY2025–26 pending.

    Industry Fund (median balanced)
    SMSF (median, ATO data)
    Source: ATO SMSF Statistical Report 2024; APRA Fund-Level Statistics 2024. After-fee returns.
    8.7%
    Industry fund 10-yr avg p.a. to Jun 2025
    7.6%
    SMSF median 10-yr avg p.a. to Jun 2025
    −1.1%
    Median annual gap (compounds significantly)

    Average Annual Returns by Fund — Balanced Option

    After-fee returns to 30 June 2025. Source: SuperRatings, APRA Fund-Level Statistics, ATO SMSF Statistical Report. FY2025–26 data pending (funds report Aug–Oct 2026).

    Fund / Option 1 yr 3 yr (p.a.) 5 yr (p.a.) 10 yr (p.a.)
    AustralianSuperIndustry
    Balanced
    11.5% 7.6% 9.1% 9.2%
    HostplusIndustry
    Balanced
    12.1% 7.9% 9.3% 9.5%
    UniSuperIndustry
    Balanced
    11.2% 7.1% 8.6% 8.9%
    Aware SuperIndustry
    High Growth
    13.4% 8.2% 9.6% 9.4%
    REST SuperIndustry
    Core Strategy
    10.8% 6.4% 8.0% 8.4%
    HESTAIndustry
    Core Pool
    11.0% 6.8% 8.3% 8.6%
    Industry fund median (balanced) — SuperRatings SR50
    Median industry fund
    SR50 Balanced (60–76) Index
    11.4% 7.2% 8.6% 8.7%
    SMSF comparison — ATO Statistical Report 2025
    SMSF median
    All strategies, after all costs (ATO data)
    9.8% 5.6% 7.3% 7.6%

    ⚠ Returns are approximate and based on publicly available 2023–24 data. Industry fund returns shown for the standard balanced/default option. SMSF returns are the ATO-reported median across all SMSF investment strategies and include funds with very low balances which drag the median down. High-balance, actively managed SMSFs typically outperform the median. Past performance is not a reliable indicator of future performance.

    Three Australians, Three Outcomes

    Click a profile to see a detailed breakdown of why their situation points to a specific recommendation.

    👩‍⚕️
    Sarah
    Registered Nurse, Age 34
    $85,000
    Super balance
    Industry Fund
    At $85K, a typical SMSF costs $4,500/yr — that's 5.3% of her balance just in fees. An industry fund costs ~$680.
    She values the default life and TPD insurance through her fund, which covers a hazardous profession at group rates she couldn't match individually.
    No specific investment strategy requires an SMSF. AustralianSuper's balanced option provides diversified exposure at a fraction of the cost.
    Verdict: Stay in an industry fund, review again when balance reaches $400K+.
    👷
    Mark
    Builder / Sole Trader, Age 52
    $680,000
    Super balance (inc. spouse)
    SMSF Makes Sense
    Combined $680K balance means SMSF costs ($5,000/yr) represent just 0.74% — less than most industry fund percentage fees at this level.
    He wants to hold a commercial property (his own workshop) inside super using an LRBA. This strategy is only available through an SMSF.
    A 2-member fund (with spouse) splits the fixed cost, making the economics even more favourable.
    Verdict: Strong SMSF candidate. Engage an SMSF-specialist accountant and financial adviser before proceeding.
    👩‍💼
    Jennifer
    Company Director, Age 58
    $1,850,000
    SMSF balance (2 members)
    SMSF Clear Winner
    At $1.85M, industry fund fees (0.6%) would cost $11,100/yr. Her SMSF costs ~$6,500 all-in — saving $4,600/year net of costs.
    She has a diversified share portfolio, direct investment property, and franking credits — all held inside the SMSF tax effectively.
    As she approaches pension phase, she can convert to pension mode inside the same SMSF, giving her full control over drawdown timing and estate planning via a BDBN.
    Key risk: Division 296 tax will apply to earnings above $3M if balance grows further. Modelling is essential.
    Investment Flexibility

    What Can Your SMSF Invest In?

    SMSFs unlock a broader investment universe than any industry or retail super fund can offer. These asset classes are either unavailable or severely restricted in industry funds.

    🏠
    Residential Property
    SMSF ✓ Industry ✗
    Buy a rental property directly inside your super — rent, capital gains, all taxed at 15% (0% in pension phase).
    🏢
    Commercial Property
    SMSF ✓ Industry ✗
    Purchase your business premises inside your SMSF and pay rent to yourself — a popular strategy for small business owners.
    Cryptocurrency
    SMSF ✓ Industry ✗
    Legally hold Bitcoin, Ethereum and other crypto in your SMSF with ATO-compliant custody — gains taxed at 15% not 47%.
    🥇
    Physical Gold & Precious Metals
    SMSF ✓ Industry ✗
    Hold physical gold bars or coins in an approved vault — a true inflation hedge that industry funds cannot offer members.
    🏗️
    Unlisted & Private Equity
    SMSF ✓ Industry ✗
    Invest directly in private companies, venture capital, or syndicated property deals — illiquid assets with premium returns.
    🖼️
    Collectibles & Art
    SMSF ✓ Industry ✗
    Wine, art, coins, and stamps can be held in an SMSF under strict storage and insurance rules — they cannot be used by members.
    📋
    Mortgage Lending (LRBA)
    SMSF ✓ Industry ✗
    Borrow to buy assets via Limited Recourse Borrowing Arrangements — amplify returns using leverage inside the concessional tax environment.
    📈
    ASX Shares & ETFs
    SMSF ✓ Industry ✓
    Both SMSFs and industry funds can hold listed shares and ETFs, but an SMSF lets you select exactly which stocks and build a tax-effective portfolio.
    20-Year Case Study

    How SMSF Fee Savings Compound Over Time

    At higher balances, a fixed SMSF fee beats a percentage-based industry fund fee by a growing margin every year. See how the gap compounds over 20 years.

    SMSF ($4,500/yr fixed fee)
    Industry Fund (0.85% p.a.)
    SMSF balance after 20 years
    Industry fund balance after 20 years
    Extra retirement savings with SMSF

    Assumptions: $500,000 starting balance · $27,500 annual contributions · 8.7% gross return p.a. · SMSF annual cost $4,500 (fixed) · Industry fund MER 0.85% · All figures in today's dollars, pre-tax simplification for illustration only.

    Contribution Caps Explained

    How much you can put into super each year — and how your employer's SG contributions eat into your concessional cap.

    Type2024–25 CapTax rateWho contributes
    Concessional (pre-tax) $30,000 15% in super Employer SG + salary sacrifice + personal deductible
    Non-concessional (after-tax) $120,000 0% (already taxed) Personal after-tax contributions
    Non-concessional 3-yr bring-forward $360,000 0% If balance < $1.66M; triggered automatically
    Total super balance limit $1.9M Above this, non-concessional contributions are nil
    Transfer Balance Cap $1.9M Max you can move from accumulation to pension phase
    Carry-forward concessional Up to 5 unused years 15% in super Available if balance < $500K; rolling 5-year lookback
    Div 296 tax threshold $3,000,000 +15% on earnings Applies to balances above $3M from 2025–26

    How much SG eats into your concessional cap

    Move the slider to see how your employer's 11.5% Super Guarantee fills the $30,000 concessional cap.

    Annual salary $100,000
    Employer SG (11.5%) $11,500
    Remaining for salary sacrifice / personal deductible $18,500
    At a $100,000 salary your employer contributes $11,500 in SG, leaving $18,500 of your $30,000 concessional cap for additional contributions.

    SMSF Setup: From Decision to First Audit

    What actually happens between deciding to set up an SMSF and becoming a fully operational trustee.

    1
    Get licenced financial advice
    An SMSF is not suitable for everyone. A licenced financial adviser (AFSL holder) must determine that an SMSF is in your best interest before recommending it. This is a legal requirement under ASIC's advice obligations.
    Week 1–2
    2
    Choose trustee structure
    Decide between individual trustees (cheaper upfront, more admin when members change) or a corporate trustee — a Pty Ltd company established solely to act as trustee. Most advisers recommend corporate for new funds.
    Week 2
    3
    Establish the trust deed
    A solicitor or SMSF specialist prepares the trust deed — the legal document governing your fund's rules. Cost: $500–$1,500. The deed must comply with the Superannuation Industry (Supervision) Act 1993.
    Week 2–3
    4
    Register the fund with the ATO
    Apply for an ABN and TFN for the fund through the ATO. If using a corporate trustee, also register the company with ASIC. The ATO registers the fund as an SMSF and it becomes an Australian Superannuation Fund.
    Week 3–4
    5
    Open bank account & set up investment platform
    Open a dedicated bank account in the fund's name (not the members' personal accounts). Select a share trading or investment platform — ClassicDirect, CommSec SMSF, Superhero, SelfWealth, or a specialist SMSF platform like HUB24.
    Week 4–5
    6
    Roll over existing super balance
    Request a rollover from your existing fund to the SMSF. This must be done electronically via SuperStream. Allow 3–5 business days. Do not close your old fund until the rollover is confirmed complete.
    Week 5–6
    7
    Create & document your Investment Strategy
    Trustees must document a written investment strategy covering risk, return, liquidity, diversification, and insurance needs of all members. This document must be reviewed at least annually and updated when member circumstances change.
    Week 6
    8
    First-year audit & ATO lodgement
    At year end, an SMSF-registered auditor independently audits the fund's financial statements and compliance. The approved SMSF auditor then signs off before you (or your accountant) lodge the annual SMSF return with the ATO by 31 October.
    Month 14–16 (after first year)

    SMSF Compliance Calendar

    Key dates and obligations for SMSF trustees across the financial year. Missing deadlines can trigger ATO penalties.

    July
    New financial year begins — reset contribution caps
    Review investment strategy for upcoming year
    Confirm Transfer Balance Cap account balances
    August
    Lodge SMSF annual return (if not using tax agent)
    Pay ATO supervisory levy ($259) with annual return
    September
    Review pension payments — minimum drawdown check
    Assess insurance cover adequacy for all members
    October
    SMSF annual return due (31 Oct, if using tax agent)
    Auditor must be appointed before lodgement
    ASIC annual review fee due (corporate trustees)
    November
    Year-end tax planning — consider unrealised gains
    Review asset allocation vs investment strategy
    December
    Mid-year review of contributions made to date
    Consider in-specie contributions before year end
    January
    Check in-house asset ratio — must stay below 5%
    Review related-party transactions for arm's length
    February
    Calculate minimum pension payments if in pension phase
    Schedule trustee meeting; minute key decisions
    March
    Review BDBN (Binding Death Benefit Nomination) validity
    Assess whether carry-forward contributions are available
    April
    Begin preparing financial statements with accountant
    Reconcile fund bank account and investment records
    May
    Final salary sacrifice contributions before 30 June cut-off
    Ensure employer SG received — chase if missing
    Review bring-forward rule if making non-concessional contributions
    June
    30 June: financial year end — last date for contributions
    Ensure minimum pension payments made before 30 June
    Confirm in-house asset compliance at year end
    Document all trustee decisions made during the year

    Super Glossary

    Plain-English definitions of the terms you'll encounter when comparing or managing superannuation in Australia.

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