At what balance does an SMSF make sense?
Self-Managed Super Funds (SMSFs) have largely fixed running costs — an audit, an accountant, the ATO supervisory levy, optional actuarial certificate, optional ASIC corporate-trustee fees. Typical total: $2,000-$4,000 per year. APRA-regulated funds (industry, retail, corporate) charge a percentage of your balance — typically 0.6-1.5% all-in. So as your balance grows, the percentage fee grows too, while SMSF cost stays flat.
The break-even point is just maths: SMSF fixed cost ÷ APRA fee percentage. At a $2,500 SMSF cost and 0.85% APRA fee, break-even is around $294,000 — below this, the APRA fund is cheaper; above, the SMSF is. This calculator lets you set both inputs and see the break-even directly. The 'rule of thumb' you'll see in the financial press is around $200,000-$300,000 — that range comes from typical input assumptions.
Cost is only one consideration. SMSFs give you direct property investment (including geared property via LRBA), custom share-by-share asset allocation, family-fund strategies (up to 6 members from 2021), and control over insurance arrangements. Against this: 200+ hours of trustee time per year, personal legal liability, stricter audit / compliance regime, and scale disadvantages on group insurance. The cost calculation is necessary but not sufficient — many people with $500k+ balances stay in APRA funds because the simplicity beats the savings.