What are the costs of running an SMSF?

SMSF running costs include accounting and tax return preparation, annual audit fees, ASIC corporate trustee fees, the ATO supervisory levy, and financial advice fees. The national average for administration and operating costs is approximately $7,400 per year, though costs vary based on the complexity of your fund.

What is the maximum I can contribute to my SMSF?

For FY2025-26, the concessional cap is $30,000 and the non-concessional cap is $120,000. The carry-forward rule lets you use unused caps from prior years, and the bring-forward rule may allow up to $360,000 in non-concessional contributions over three years. Both caps increase from 1 July 2026.

What is the proposed Division 296 tax?

The proposed Division 296 tax would apply an additional 15% tax on earnings attributable to member balances exceeding $3 million, including unrealised capital gains. The measure is currently expected to apply from FY2026-27.

Self-Managed Super Funds

Q: What happens to my SMSF when I retire?

You can convert your accumulation balance into a tax-free retirement phase pension. The maximum transfer is currently $2 million (the general Transfer Balance Cap, increasing to $2.1 million from 1 July 2026). Investment earnings on pension phase assets are tax-free, compared to 15% in accumulation phase.

A self-managed super fund gives you control over how your retirement savings are invested. But with that control comes responsibility - and the difference between a well-run SMSF and a costly mistake often comes down to the quality of advice behind it.

At Insight Wealth Planning in Newcastle, we help individuals, couples, and business owners set up, manage, and optimise self-managed super funds across the Hunter Valley.

Led by Directors Simon and Tabitha Tworek, our team provides end-to-end SMSF advice, from determining whether an SMSF is right for you, through to fund establishment, investment strategy, compliance, and the transition into retirement phase pensions. Our Pathway to Wealth™ methodology, developed by Rob McGregor (2009 AFR Smart Investor Blue Ribbon Award finalist), ensures your SMSF sits within a broader financial strategy rather than operating in isolation.

SMSFs are the fastest-growing segment of Australia’s superannuation system. As at September 2025, there are over 661,000 SMSFs holding more than $1.07 trillion in assets, with approximately 1.22 million members. The average SMSF holds around $1.63 million, and the sector now represents roughly one quarter of Australia’s total super pool. But an SMSF is not right for everyone, and getting the setup wrong can be expensive.

Is an SMSF Right for You?

An SMSF can offer significant advantages for the right person, but it also comes with legal obligations, compliance costs, and time commitments that make it unsuitable for some. We help you assess whether an SMSF is genuinely the best structure for your situation before you commit.

SMSFs generally become cost-effective at balances above $200,000 to $500,000, depending on investment complexity. Below this range, the fixed costs of administration, audit, and compliance can represent a meaningful drag on returns compared to industry or retail alternatives. Average SMSF administration and operating costs are approximately $7,400 per fund annually, though this varies significantly based on the complexity of investments held and the service providers used.

The people who benefit most from SMSFs tend to be high-income earners, business owners, those with substantial super balances, couples who want to combine their super into a single fund, and individuals who want direct control over their investment choices, including property, shares, and alternative assets.

Book a free consultation to find out whether an SMSF is the right choice for your situation.

Want to know more?

Click through to find out some answers to some of our Frequently asked Questions, or contact us today for a non-obligatory discussion about your situation and how we could help.

FAQ’s

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SMSF Services We Provide

SMSF Establishment and Setup

Setting up an SMSF involves more than just registering a fund. You need a trust deed, a corporate trustee (recommended for most members), an ABN and TFN, a dedicated bank account, and an investment strategy that complies with superannuation law. We manage the entire setup process and ensure everything is structured correctly from day one.

We also help you decide on the right trustee structure. Approximately 88% of SMSFs use a corporate trustee rather than individual trustees, and for good reason: corporate trustees offer greater asset protection, simpler member changes, and a cleaner separation between personal and fund assets. We recommend corporate trustees for most new funds.

Investment Strategy and Portfolio Construction

Every SMSF is legally required to have a documented investment strategy, and the ATO expects this strategy to be regularly reviewed. Your investment strategy must consider diversification, liquidity, the fund’s ability to pay benefits, insurance needs, and the risk profile of members.

We go beyond ticking a compliance box. Your SMSF investment strategy should reflect your actual retirement goals, risk tolerance, and time horizon. We work with our CARE Investment Committee to build portfolios that balance growth with the income reliability you will need in retirement, including our “4-year pause button” concept that protects against sequencing risk.

SMSF trustees invest across a broad range of asset classes. Nationally, listed shares and trusts account for approximately 32% of SMSF assets, cash and term deposits represent 16%, unlisted trusts and managed investments make up 19%, and direct property (both commercial and residential) accounts for around 12%. We help you determine the right asset allocation for your fund.

SMSF Property Investment

SMSFs can invest in both commercial and residential property, including through Limited Recourse Borrowing Arrangements (LRBAs). Property is often cited as a primary reason for establishing an SMSF, particularly for business owners who want to hold their business premises inside their fund.

However, property investment through an SMSF comes with strict rules around related-party transactions, sole purpose test compliance, and borrowing restrictions. We ensure any property investment is structured correctly and genuinely serves the fund’s investment objectives, not just the trustee’s personal interests.

Contribution Strategies for SMSF Members

One of the key advantages of an SMSF is the ability to implement sophisticated contribution strategies. For FY2025-26, the concessional (before-tax) contribution cap is $30,000 per year, and the non-concessional (after-tax) cap is $120,000. If your total super balance was below $500,000 at 30 June 2025, the carry-forward rule allows you to contribute unused concessional cap amounts from the previous five years.

The bring-forward rule may allow non-concessional contributions of up to $360,000 over three years (subject to your total super balance being below $1.76 million at 30 June 2025 for the full amount). The general Transfer Balance Cap is currently $2 million, with both contribution caps and the TBC set to increase from 1 July 2026 (concessional cap to $32,500, non-concessional to $130,000, TBC to $2.1 million).

We coordinate contribution timing across members to maximise tax effectiveness, particularly for couples where one partner has a significantly higher balance than the other.

Transition to Retirement and Pension Phase

One of the most powerful features of an SMSF is the ability to precisely control the transition from accumulation to pension phase. Once a member reaches preservation age (60 for all Australians), they can commence a Transition to Retirement Income Stream (TRIS) while continuing to work, or move into a full retirement phase pension when they meet a condition of release.

Investment earnings on assets supporting a retirement phase pension are tax-free, compared to the 15% tax rate in accumulation phase. For a fund with $1 million in pension phase assets earning 7% per year, this tax saving alone is worth approximately $10,500 annually.

We help you time the transition, structure your pension accounts, and ensure compliance with the transfer balance cap. Learn more about our pre-retirement planning and retirement income services.

SMSF Compliance and Administration

SMSF trustees have significant legal obligations. Your fund must be audited annually by an approved SMSF auditor, you must lodge an annual return with the ATO, maintain proper records, and ensure all transactions comply with superannuation law. Breaches can result in penalties, including the fund losing its complying status (which would trigger tax at the top marginal rate on all fund assets).

We coordinate your SMSF administration, working with your accountant and auditor to ensure everything runs smoothly. We also monitor regulatory changes that may affect your fund, such as the proposed Division 296 tax on member balances exceeding $3 million (currently expected to apply from FY2026-27).

Estate Planning and Death Benefit Nominations

Superannuation does not automatically form part of your estate. How your SMSF benefits are distributed on death depends on the type of death benefit nomination in place and the terms of your trust deed. We help you understand the difference between binding, non-binding, and reversionary nominations, and ensure your nominations are valid, current, and aligned with your broader estate plan.

This is particularly important for blended families, where the default distribution may not reflect your wishes. The tax treatment of death benefits also varies depending on whether the recipient is a tax dependant, and the proportion of taxable versus tax-free components within the fund. Working with your solicitor, we ensure your SMSF estate planning is watertight. For families also navigating aged care, our Investing in Aged Care Decisions service ensures your SMSF and aged care strategies are coordinated. And if you need to review your life and income insurance arrangements within or outside your SMSF, our insurance advisory team can help.

Our SMSF Advisory Process

Assessment

We determine whether an SMSF is genuinely the best structure for your situation, or whether an alternative would serve you better.

Establishment

We set up your fund with the right trustee structure, trust deed, registrations, and investment strategy.

Strategy

We build your investment portfolio and contribution strategy, aligned with your retirement timeline and risk profile.

Management

We coordinate administration, compliance, and reporting with your accountant and auditor.

Review

We meet regularly to review your fund’s performance, rebalance investments, and adjust your strategy as your circumstances change.

Our SMSF service integrates with the full Pathway to Wealth™ lifecycle journey. Whether you are at the Foundations stage and considering your first SMSF, actively building wealth through strategic contributions, approaching pre-retirement and planning your transition to pension phase, or already retired and drawing income from your fund, we ensure your SMSF supports your broader financial plan at every stage.

Meet our team of experienced advisers who help Newcastle families and business owners get the most from their self-managed super funds.

Frequently Asked Questions About Self-Managed Super Funds

There is no legal minimum balance, but SMSFs generally become cost-effective at balances above $200,000 to $500,000. Below this range, the fixed costs of administration, audit, and compliance (averaging approximately $7,400 per fund annually) can represent a significant drag on returns compared to industry or retail super fund alternatives. We assess your specific situation to determine whether an SMSF would genuinely benefit you.

SMSF running costs include accounting and tax return preparation, annual audit fees, ASIC corporate trustee fees, the ATO supervisory levy, and any investment management or financial advice fees. The national average for administration and operating costs is approximately $7,400 per year, though costs vary based on the complexity of your fund’s investments and the service providers you use. Funds with simpler investment structures can operate for significantly less.

Yes. SMSFs can invest in both commercial and residential property, including through Limited Recourse Borrowing Arrangements (LRBAs). Business owners can hold their business premises inside their SMSF and pay rent to the fund. However, strict rules apply: you cannot live in a residential property owned by your SMSF, related-party transactions must be at arm’s length, and borrowing arrangements must comply with superannuation law. We ensure any property investment is structured correctly from the outset.

For FY2025-26, the concessional (before-tax) cap is $30,000 and the non-concessional (after-tax) cap is $120,000. The carry-forward rule lets you use unused concessional caps from up to five prior years (if your total super balance is below $500,000). The bring-forward rule may allow up to $360,000 in non-concessional contributions over three years. Both contribution caps are set to increase from 1 July 2026 (concessional to $32,500, non-concessional to $130,000).

When you meet a condition of release (typically reaching age 60 and ceasing employment, or reaching age 65), you can convert your accumulation balance into a retirement phase pension. Investment earnings on pension phase assets are tax-free, compared to 15% in accumulation phase. The maximum amount you can transfer into pension phase is currently $2 million (the general Transfer Balance Cap, increasing to $2.1 million from 1 July 2026). Our Retire in Style service helps you manage this transition.

The proposed Division 296 tax would apply an additional 15% tax on earnings attributable to member balances exceeding $3 million, effectively doubling the tax rate from 15% to 30% on earnings above that threshold. Importantly, the calculation includes unrealised capital gains, which means you could face a tax liability on assets that have increased in value but have not been sold. The measure is currently expected to apply from FY2026-27. We are monitoring this closely and advising affected clients on strategies to manage the potential impact.

Get Expert SMSF Advice Today

Whether you are considering setting up an SMSF, want a review of your existing fund, or need help transitioning into retirement phase, book a complimentary consultation with our team today. Call us on (02) 4941 1888 or email contact@insightadvice.com.au. We are based in Newcastle and work with individuals, couples, and business owners right across the Hunter Valley, Lake Macquarie, and Central Coast regions.