How much do I need to Set up a Self Managed Super Fund?

If you want to start a Self Managed Superannuation Fund (SMSF) the Australian Securities and Investment Commission (ASIC) recommends a minimum fund balance of $200,000. Less than this can be considered as not cost effective.

This is also dependent on your circumstances and objectives, as you should still consider setting up a SMSF with less than $200,000 if:

  • You are willing to do the administration and manage the investments yourself which will keep the running costs down.
  • You will be making contributions to quickly bring the balance to $200,000.
  • You have a large asset like a business property, an inheritance or funds in another fund that will be transferred into the fund quickly.
  • You want flexibility and/or control of your superannuation.

Some of the flexibility and control that attracts people to a SMSF include:

  • Greater control of your investments.
  • Ability to pool funds with up to three other individuals.
  • Effective tax management.
  • Retirement and estate planning flexibility.
  • Capacity to purchase a large asset e.g. property.

It also gets you actively involved with your superannuation and more focused on your end game.

What should you do now?

For most people, getting started is the hardest step. Here are a few actions that you can take today:

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Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686).