SMSF comparison
SMSF vs industry fund: fees, control and the breakeven balance
The honest comparison — not a sales pitch. Industry funds win on price for small balances and zero admin overhead. SMSFs win on price for larger balances, on investment choice always, and on control and transparency always. Here's where the line sits in 2026 and how to decide which side you're on.
The cost crossover
Industry funds charge a percentage of your balance — typically 0.6%–1.0% all-in once you add investment fees, admin fees, and the indirect cost ratio. That sounds small but compounds aggressively: on a $500,000 balance, a 0.85% fee is $4,250 every year, and rising every year as your balance grows.
SMSF fees are fixed. easySMSF charges a fixed monthly fee for full administration and audit, regardless of balance. That means the percentage you pay shrinks every year as the fund grows. At $500,000 our fee is well under 0.4% of the balance; at $1M it's under 0.2%; at $2M it's under 0.1%.
The crossover — where the SMSF starts costing less than an industry fund in absolute dollars — sits around $150,000–$200,000 combined member balance for a typical industry fund. Below that, an industry fund is cheaper. Above it, the SMSF wins on cost every single year, and the gap widens over time.
- Industry fund: percentage of balance (~0.6%–1.0% all-in) — grows with your balance
- SMSF: fixed monthly fee — shrinks as a percentage as your balance grows
- Breakeven on cost: around $150,000–$200,000 combined member balance
- Investment choice: SMSF can hold direct shares, ETFs, property, term deposits, bullion
- Insurance: SMSF can hold life/TPD/IP cover — arrange before rolling over
- Control: full transparency over every transaction, every quarter, every asset