Unfortunately, Australian superannuation system is complex and the rules have been subjected to many changes over the years.
This page is not intended to cover all superannuation issues in depth. Rather, its purpose is to provide some key data and valuable pointers
We only recommend two types of superannuation funds:
A SMSF has the following advantages:
Depending on how funds are invested, the cost of running a SMSF are largely fixed. A SMSF must pay accounting and audit fees plus a fee to the ATO, but these costs should not be influenced by the size of the fund. Rather, the accounting and audit fees should only be influenced by the complexity of the fund’s investment strategy. By way of contrast, a public-offer fund’s fees are percentage based. The more super you have, the more you pay. A person with $1million in a public offer fund will pay 10 times the fees charged to a person with $100,000 even though there is no more work to administer an account with an extra zero on the end of the number.
ASIC has recently issued a release stating that $200,000 is the minimum balance before it normally would make sense to set up a SMSF. We agree with that $200,000 will be an appropriate minimum balance in most circumstances.
Trish Power’s SuperGuide website contains a wealth of information on various superannuation topics. It can be accessed here: