Our Approach: From Process to Fees

Most advisers – including us – recommend $200,000–$250,000 as the minimum balance where an SMSF becomes genuinely cost-competitive with a large industry or retail fund.  The ongoing cost of running an SMSF typically runs $2,600–$4,600 per year. At a $250,000 balance, that is 1.0–1.8% in annual fees – comparable to many managed funds. At $500,000 or above, the cost as a percentage becomes very competitive.  For tech professionals specifically, the SMSF often becomes attractive earlier than it might for others – because the ability to deploy carry-forward concessional contributions after a large RSU vest year can move significant taxable income from 47% to 15%. We will give you an honest cost comparison for your specific numbers in the initial conversation.

This is one of the most underestimated risk areas for SMSF trustees and it requires active management well before you leave.  For an SMSF to remain complying at its 15% tax rate, it must pass a three-limb residency test including that central management and control of the fund ordinarily takes place in Australia. The ATO allows trustees to be temporarily overseas for up to two years without affecting compliance, but you must actively manage the fund from abroad and have a documented framework supporting this.  For longer-term moves, you will typically need to appoint a replacement trustee in Australia, or restructure the fund entirely. For clients relocating to the UK, US, or Singapore, we plan this at least 3–6 months before departure. Many of our tech professional clients are expats or move internationally during their careers – this is a scenario we manage regularly.