SMSF – Minimum needed as recommended by ASIC

In an attempt to improve the quality of advice provided by advisers on SMSF, the Australian Securities and investments commission (ASIC) has released two information sheets – click on the link below for more information:
Information Sheet 205 Advice on self-managed superannuation funds: Disclosure of risks, or INFO 205, and
Information Sheet 206 Advice on self-managed superannuation funds: Disclosure of costs, or INFO 206.
The information sheets specify the types of risks and costs one should consider when deciding on whether to establish or switch to a SMSF. The information sheets also deal with the cost-effectiveness of a SMSF, making clear ASIC’s view that a SMSF with a starting balance of $200,000 or below is unlikely to be in the client’s best interests and that advice to establish one below that threshold is more likely to be scrutinised by ASIC. “Setting up an SMSF is a significant financial step for consumers and many factors can impact their decision. It is therefore important that consumers receive good quality advice that will assist them in making informed decisions about their retirement savings,” ASIC’s deputy chairman Peter Kell said.
If you would like more information on the costs of operating a SMSF – click on the link below:
Costs of Operating SMSFs Report by RiceWarner Actuaries.
The underlying costs of operating a SMSF can be found on page 5 of the RiceWarner Report and comparing the cost of SMSF to Retail Super funds can be found on page 9. Please note that “low” fees in the report means the trustee/member is doing most of the admin work/decision making.
Costs are not the only consideration when making the decision as to whether to invest in a SMSF or an APRA regulated/retail super fund. These other issues include:

  • The time available and expertise of the Trustees/Members; 
  • Loss of protections available to members of APRA regulated/retail super funds; 
  • Asset allocations & diversification; 
  • Anti-detriment payments;
  • Gearing; and 
  • Dealing with falling balances at older ages.

More Articles


Deciding on your retirement funding options comes down to personal choice. . If you’re close to...

Read full article

The Deadliest pandemics in History

Check out the Deadliest pandemics in...

Read full article

Middle-to-higher incomes boosting SMSF growth

The SMSF sector experienced healthy growth over the March quarter, with men and women on middle-to-higher...

Read full article

The superannuation changes from 1 July

The super changes on the way from the start of the 2024-25 financial year. . A number of...

Read full article

Investment and economic outlook, May 2024

Region-by-region economic outlook and latest forecasts for investment returns. . For the last...

Read full article

Downsizer contributions can be time critical

With the expansion of the downsizer contribution, the timing of when it is used can affect how to use...

Read full article

Deeming freeze a win for Age Pensioners

Why the decision to keep deeming rates on hold may be a window for interest rates.   . In...

Read full article

Plan now to take advantage of stage 3 tax cuts

With the stage three tax cuts set to be implemented in around six weeks, opportunities for tax-saving...

Read full article

Sofie Korac is an Authorised Representative (No. 400164) of Prudentia Financial Planning Pty Ltd, AFSL 544118 and a member of the Association of Financial Advisers.

Financial Advice Sydney and the North Shore Office based in Gordon NSW

Financial Services Guide - Disclaimer & Privacy Policy