I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC

Super Facts and Tips

The Cost of DIY Super Funds

The ATO's latest update on SMSFs reveals that the average operating expense rate for SMSF is 1.06%, which is equivalent to $11,000 for the average fund balance of $1,066,060 shown in the ATO's report. A better comparison would be one that considers the average cost of an SMSF for your type of fund size.

Take note that the operating expense ratio comes as a result of dividing the costs of running an SMSF based on the value of the assets within the fund.

A $60,000 account balance will yield $6,000 in yearly fees under an expense ratio of 1%. An OER or operating expense ratio of 0.25% over an account balance of $600,000 will result in $1500 in yearly fees even if the low expense ratio is linked to much higher account balances. The ATO mentioned that an OER of 0.25% was lower when compared to the average OER of an SMSF of any fund balance size. This does not necessarily mean though that individual SMSFs are incapable of securing lower OERs.

The ATO reported that the average OER had noticeably increased since 2012 because of the latest data on the non-deductible costs acquired by SMSFs like those that are going through the pension phase. The ATO stated that the average OER continued to decline about the increase in the SMSF size.

The following statistics from the ATO may help:

• SMFS that contain fund balances in between $500,000 to $1 million have a 1.35% average OER, which happens to be $8,100 for a fund balance of $600,000.
• At least 46% or half of all SMSFs have an OER of approximately 1% or less.
• 60% of SMSFs have approximately 1.5% or less OER.
• 2% of SMSFs have one percent or less OER, with approximately 12.2% of the SMSFs having one percent or a quarter (0.25%) or less OER, and 14% of them have on OER that range between 0.5% and 0.25%.

How Are The Costs Of The Various SMSF Service Providers Compared?

This question is crucial for anybody who is considering opting for an SMSF. There is a huge difference in quotes, but which service makes up for a better choice will depend on what you get on your investment. You can ask every adviser to elaborate on the following:

• Advice component (if provided)
• Cost of establishment (trust deed included)
• Running costs including administration, lodgement and reporting (with the annual audit).
• Any costs covered by the quoted fee.
• Any costs that may come about that are excluded from the fee.

The answers you get from the advisers will help you compare which adviser is the most profitable although cost is only one factor to consider in choosing an adviser or SMSF service.

Note: If you are looking for a corporate trustee, you must pay an additional $800 to $1,100 in your SMSF start-up costs. You can learn more about this process by reading through our articles at www.australiansuperfinder.com.au

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