SMSF minimum balance

$500,000 minimum for cost-effective SMSFs is “misleadingly high”

A threshold of $500,000 below which SMSFs are likely to not be cost competitive with larger funds is “misleadingly high”, according to SuperConcepts.

The Productivity Commission, in its recently released report on the super system, found that larger SMSFs were broadly competitive in terms of investment performance with large APRA-regulated funds. However “many” SMSFs with balances under $500,000 “delivered materially lower returns on average than larger SMSFs”, said the Commission in its report.

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