|Year||Account balances||Annual fees|
|Current fund||SMSF||Difference||Current fund||SMSF||Difference|
1. Assumption about the user
The SMSF fee comparison involves complex tax and superannuation calculations and general financial principles, it is only appropriate for use by suitably qualified persons with the requisite knowledge in these areas, or typically a licensed financial adviser. SMSF fee comparison is reliant on the integrity of the data entered, for which the user accepts complete responsibility.
2. General concepts & assumptions
The purpose of SMSF fee comparison is to compare the fees charged by a retail super fund with the fees in an SMSF. It operates on an annual basis without any contemplation of partial income years. Calculations assume continuation of income tax and superannuation laws effective from March 2017. Draw-downs and insurance premiums have been ignored for simplicity.
The SMSF fee comparison has the ability to model super contributions in the advanced mode. The user can choose from three different contribution strategies:
SG only and Max CC contributions are taxed at the selected super contributions tax rate. Custom contributions are assumed to be entered on an after-tax basis. Contributions are assumed to continue for the full projection term irrespective of age.
The SMSF fee comparison can model dollar based fee, percentage based fees and/or tiered fees. No allowance has been made for transaction, performance, withdrawal or other fees.
The model allows the user to model Macquarie Consolidator administration fees; this is included for the purpose of fee comparisons and in no way advice on the preferred administration product.
5. Tax assumptions
The SMSF fee comparison assumes that earnings are taxed at 15% and any administration, adviser and investment management fees are fully tax deductible. Set up fees are also assumed to be tax deductible.
Macquarie cannot and does not purport to give any tax advice, and potential investors should seek their own tax advice before making any investment decisions. Assumptions about the tax treatment of various payments may or may not reflect actual tax treatment in a client's circumstances.
6. Return assumptions
The SMSF fee comparison assumes that the annual return applied remains constant for the duration indicated. The calculations are illustrative only and the earning rates are not guaranteed in any way by Macquarie.
Future dollars are discounted back into today's dollar terms using CPI as the discount rate. Dollar based fees are assumed to increase annually with CPI. No allowance has been made for the change in cost of living above inflation.
This calculator is a software program developed by Macquarie Group Limited and its related bodies corporate (collectively referred to below as "Macquarie", "we", "us" or "our"). Macquarie is the owner of the copyright in this calculator.