How Much Money Do You Need to Set Up an SMSF?

If you're thinking about setting up your own Self Managed Super Fund (SMSF), one of the first questions you'll probably ask is: how much money do I actually need to get started?

It’s a fair question — because while having your own super fund gives you more control, it also comes with responsibilities, ongoing costs, and regulatory obligations under superannuation laws.

Let’s break it down so you can make an informed decision about whether an SMSF is the right move for your retirement savings.

There’s No Official Minimum — But There is a Practical One

The Australian Taxation Office (ATO) doesn’t specify a minimum superannuation balance to set up an SMSF. Technically, you could start with $10,000. But financially, that’s unlikely to be cost effective.

That’s because SMSF setup costs and administration fees are relatively fixed — whether your fund has $100,000 or $1 million. So the lower your starting balance, the more those fees eat into your returns.

General guidelines:

Even ASIC guidance suggests SMSFs are typically more cost-effective with balances over $500,000, though technological advances and low-fee providers are starting to shift that threshold.

What Does It Cost to Set Up an SMSF?

SMSF setup costs vary depending on your trustee structure, whether you choose individual trustees or a corporate trustee structure.

Typical smsf setup costs include:

• Trust deed drafting and legal documents
• Company registration if using a corporate trustee
• Initial compliance advice

Estimated cost: $1,000–$2,500

Ongoing SMSF Administration Costs

Once your SMSF is up and running, there are annual running costs:

• SMSF administration and tax return
• Independent audit (required by law)
• SMSF supervisory levy to the ATO
• ASIC fees for corporate trustee (if applicable)
• Professional fees for accounting and compliance
• Optional financial adviser or specialist SMSF knowledge

Estimated annual cost: $2,000–$4,000+

Do You Need a Corporate Trustee?

A corporate trustee isn’t required, but it’s often the smarter choice. It simplifies succession planning and fund management if members change. It also streamlines record keeping and lowers the risk of non-compliance with superannuation laws.

Tip: ASIC charges a one-off fee for company registration and a small annual fee for maintaining the corporate trustee structure.

SMSFs vs Industry and Retail Super Funds

With industry super funds and retail super funds, many of the decisions and compliance obligations are taken care of for you. But that also means you give up control.

By contrast, an SMSF gives you control over:

• Investment decisions
• Choosing a diversified investment portfolio
• Managing investment fees
• Structuring your financial affairs to suit your long-term goals

An SMSF can also be used to buy property, especially through a Limited Recourse Borrowing Arrangement (LRBA) — something large funds don’t typically allow.

Is an SMSF Right for You?

An SMSF is not for everyone, but if you want to take an active part in managing your retirement savings, and you're prepared for the time commitment and responsibilities, it could be a powerful tool.

Here’s what to consider:

• Are your SMSF setup costs justified by your fund size?
• Do you have the specialist knowledge (or advisers) to stay compliant?
• Do you understand your trustee structure options?
• Can you manage or afford the ongoing costs?

Final Word

There’s no magic number — but generally, you’ll want at least $250,000 in combined super to make an SMSF setup financially worthwhile.

If you’re serious about controlling your retirement savings, investing in property or other assets, and are willing to manage the costs and compliance, an SMSF could be the right structure for you.