ATO figures reveal SMSF scale benefits
The average annual operating expenses of running a self-managed super fund (SMSF) continues to trend down, but small funds are still incredibly costly, according to recently released Australian Taxation Office figures.
Self-managed super funds with less than $50,000 in assets paid on average 7 per cent in operating expenses in the financial years ended 2009 and 2010, up from just over 6 per cent in the 2008 financial year.
For SMSFs between $50,000 and $100,000 that figure dropped from 5 per cent in 2008 to sit at around 3.6 per cent the following two years.
Funds between $100,000 and $200,000 cost less than 2.5 per cent to run on average, with that figure decreasing over the past three years of data.
However, the average assets held per SMSF had recovered to over $888,000 at 30 June 2010, with the median fund holding $512,000.
The estimated average operating expense ratio of SMSFs fell from 0.69 per cent in 2008 to 0.54 per cent in 2010. In 2010, almost 38 per cent of funds had an estimated operating expense ratio of 0.25 per cent or less.
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