SFMSF yearly administration cost

Hello guys

Me and my wife have one of our properties In SFMSF structure.

What do you feel the account should be charging us as yearly cost including audit?

I'm just trying to see if I'm on an OK deal.

Property: single house, 1 family currently renting, manager by a pm.

 

It depends....I have seen cases where there are three bank accounts and money moves around and around making it a mess to deal with v's a single bank account. Depends too if you have given them a bank data feed or leave them a bunch of paper.

Audit sub $500
Acct and Tax $1200-$1800 (+)
Actuarial Cert ?
ASIC agents services ? - Likely two companies
Financial advice ?
Contribution Notices, investment strategy support, attending to matters such as contribution allocations, pensions etc

 

Prices @Paul@PFI is quoting are pretty spot on for an an smsf with one property.

If you have a limited recourse borrowing arrangement costs might be a little higher around 2 to 2.5k ish

 

If you spell SMSF wrong there may be additional fees too

 

Why would type of borrowing effect annual costs?

 

More transactions. More effort. Depends.

 

1 property Limitted recourse loan.

Our accounting firm charges $3300 +$600 for auditing.

 

Wow that is expensive

 

My accountant charges between $2.5-$3K for Family Super Fund.

 

And some are $6K+....

 

We charge around 2.2k to 3.0k for a property with a loan and strategy advice, audit with a face to face meeting each year. If quarterly bas are need for a commercial property that is extra

That would include online reporting.

If we then did a GAP analysis with prep work, a three hour meeting looking at shortfalls in strategy, a report detailing key findings and strategies and a follow up half hour session we charge 1.500 + gst

 

It really does depend.

As paul mentioned one member could be in accumulation phase and one in pension phase. Then you need an actuarial certificate.

Or extra documentation was done to move into transition to retirement. Maybe a lump sum withdrawal.

If one in pension phase monitoring the minimum and maximum withdrawals.

Lots of things that can change the fee unfortunately.

 

- Poor records v's data feed from bank / financial sources
- Pension v accum
- Start, end or pension reset
- Changes to members, death benefits etc
- Documentation issue re any changes
- Non compliance
- Binding etc and other notices
- Complex strategies eg related parties, ungeared UT, pre-99 trust
- Unwinding / addressing old reserve strategies etc
- New acquisitions of property / loans
- Help with documentation of invest strategy
- ECT and Co-contribution and other notices
- ASIC agent / services incl changes
- BAS
- Non residency issues
- Small Business rollover relief
- Cap issues incl monitoring and advice
- CGT relief eg $1.6m transfer cap
and loads and loads more

Or you can consider a dodgy ad on the interweb that claim to offer $600 annual fees. I reckon few if any of the above would be included. Let alone advice supporting any of the above.

 

We are in our mid 30s with wife.
Property is residential
Limitted recourse loan.
The fees are plus Gst
So $3900+ GST. Includes audit.
We pay extra for meetings as we also run our business and other properties through this agency.

Having a $3900+ cost of Smsf makes the investment a poor preformer. Our PM provides excellent reporting so I'm a little unsure how come to administer 1 property costs so much.

I'm not complaining I'm just trying to understand.

 

3900 including GST and audit is on the high side.

Rather than moving on just give your accountant a call and let them know although happy with the overall service (assuming you are) that youve done some looking around and even asked a few accountants who post online and a fair fee would be from 2500 to 3000 including the audit and could they reassess the fee moving forward.

No harm in asking.

 

It also wouldnt hurt to consider seeking a competitive quote. And see what they offer also. Lets face it earning $$$ is hard work. Ask them why they charge what they do and what you can do to reduce it. If I found out that a $40 a hour student was doing 80% of the work I wouldnt be happy.

The world of software has changed accounting. If the accountant doesnt do data feeds I bet you are paying for manual processing. Data feeds mean I cant take data from Commsec (banks, brokers, funds, shares, wraps etfs, LICs etc) each DAYand it imports. The software recognises purchases of shares and sales of them and even calculates profits. It looks for dividends and does all the tax calcs. You may not have shares but that is modern accounting. I have smsf clients who I have halved fees for. They should not pay for me to be old fashioned. Perhaps why you are paying so much - Cause they are traditional and you havent ask why ?? Even the auditor I use shares the software and keeps costs down that way. Win Win