Super vs SMSF in 2025: Tax Rates, Caps, Division 293 Guide

Superannuation vs SMSF: Which Saves More Tax in 2025? (슈퍼애뉴에이션 vs SMSF, 2025 세금 절약 비교)

Australia 2025

Superannuation

SMSF

Superannuation vs SMSF: Which Saves More Tax in 2025?

(슈퍼애뉴에이션 vs SMSF, 2025 세금 절약 비교)

TL;DR Summary

  • For tax, industry/retail super and SMSFs use the same tax rules: 15% on concessional contributions and most earnings in accumulation, 0% on retirement-phase earnings within the cap. :contentReference[oaicite:0]{index=0}
  • Tax savings in 2025 mainly come from using contribution caps (concessional $30k; non-concessional $120k with bring-forward) and minimising fees—not from the fund type. :contentReference[oaicite:1]{index=1}
  • High-income earners may pay Division 293 (extra 15% on concessional contributions) if income + concessional contributions exceed $250k. :contentReference[oaicite:2]{index=2}
  • Government has announced a redesigned Division 296 (for balances >$3m): start date pushed to 1 July 2026 and no tax on unrealised gains—not yet law as at Nov 2025. :contentReference[oaicite:3]{index=3}
  • SMSFs add control and flexibility but include annual audit, admin work and fixed costs (levy, accounting, audit). Best suited to larger balances and engaged investors. :contentReference[oaicite:4]{index=4}

Concept Overview — why this matters in Australia

Both mainstream super funds and SMSFs access the same concessional tax environment. The question is less “which structure pays less tax” and more “which structure helps you use the rules well at a lower all-in cost (fees, time, risk) for your balance and needs.” Concessional caps rose from 1 July 2024, the SG rate is 11.5% in 2024–25 (moving to 12% from 1 July 2025), and policy around large balances (>$3m) is evolving—so it’s a good time to compare. :contentReference[oaicite:5]{index=5}

Comparison Table

FeatureIndustry/Retail SuperSMSF (Self-Managed)
Tax on concessional contributions 15% in the fund (extra 15% Div 293 if threshold met) Same as left (same tax law applies)
Tax on earnings (accumulation) Generally 15% (10% CGT if held >12 months) Same as left
Tax on earnings (retirement phase) 0% within transfer balance cap (general cap $1.9m) Same as left
Contribution caps (2024–25) $30k concessional; $120k non-concessional (+ bring-forward) Same as left
Fees & admin Percentage-based fees; admin handled for you Fixed costs + your time: annual audit, accounts, levy
Control & assets Limited menu; lifecycle/MySuper options Full control (incl. certain property, term deposits, ETFs)
Regulatory tasks Fund handles compliance Trustees are responsible; must appoint an approved auditor yearly
Who it suits Hands-off, cost-sensitive, small–mid balances Hands-on, larger balances, specific strategies

Sources: ATO and Moneysmart guidance. Tax treatment is the same across structures; differences are cost, control and responsibilities. :contentReference[oaicite:6]{index=6}

Who Each Option is Best For

  • Industry/Retail Super — You want low effort, default insurance, and competitive fees; your balance is modest or you prefer a diversified MySuper product.
  • SMSF — You want control (e.g., direct assets, specific ETFs/property), have time for trustee duties, and your balance/household balance is large enough that fixed costs are efficient relative to % fees. :contentReference[oaicite:7]{index=7}

Step-by-Step Process / How to Choose

  1. Check your caps & tax position (2024–25): concessional $30k; non-concessional $120k (bring-forward may apply). High earners: review Division 293. :contentReference[oaicite:8]{index=8}
  2. Estimate earnings tax: accumulation earnings 15% (10% CGT after 12 months). Compare your fund’s after-tax, after-fee returns. :contentReference[oaicite:9]{index=9}
  3. Cost reality check (SMSF): add supervisory levy (~$259 p.a.), audit, admin and accounting. Consider your time cost. :contentReference[oaicite:10]{index=10}
  4. Risk & responsibility: trustees must keep records, prepare statements, appoint an independent auditor annually. :contentReference[oaicite:11]{index=11}
  5. Policy watch (large balances): note proposed Division 296 redesign (from 1 July 2026; no unrealised gains). Confirm status before acting. :contentReference[oaicite:12]{index=12}
  6. If switching to SMSF: read ATO’s “Before you start”, decide trustee structure, set up deed, open bank/broker accounts, roll over funds, arrange insurance, and book the first audit early. :contentReference[oaicite:13]{index=13}

Cost / Fees / Tax Considerations

Key tax settings (2024–25)
  • Concessional cap: $30,000 (carry-forward may apply). Non-concessional cap: $120,000 (bring-forward available subject to TSB). :contentReference[oaicite:14]{index=14}
  • Division 293: extra 15% if income + concessional contributions > $250,000. :contentReference[oaicite:15]{index=15}
  • Earnings tax: 15% (10% CGT after 12 months) in accumulation; 0% in retirement phase within cap (general TBC $1.9m—personal caps vary). :contentReference[oaicite:16]{index=16}
  • SG rate: 11.5% in 2024–25; 12% from 1 July 2025. :contentReference[oaicite:17]{index=17}
Typical SMSF costs
  • ATO supervisory levy: ~$259 p.a. (new funds pay $518 in first year). :contentReference[oaicite:18]{index=18}
  • Annual audit & admin/accounting (market-based fees). You also handle trustee paperwork and deadlines. :contentReference[oaicite:19]{index=19}
  • Moneysmart reminds that setup and ongoing costs can be high—compare vs staying in a large fund. :contentReference[oaicite:20]{index=20}

FAQ

“Does an SMSF pay less tax than an industry super fund?”

No. SMSFs and other super funds operate under the same super tax rules. Differences come from fees, investment choices and how well you use caps. :contentReference[oaicite:21]{index=21}

“What are the super contribution caps in Australia 2025?”

For 2024–25: concessional $30,000; non-concessional $120,000 (bring-forward may allow up to 3 years at once subject to TSB). Check ATO before contributing. :contentReference[oaicite:22]{index=22}

“Is 12% SG in place now?”

SG is 11.5% for 1 Jul 2024–30 Jun 2025, rising to 12% from 1 Jul 2025. :contentReference[oaicite:23]{index=23}

“What is Division 293 and who pays it?”

High-income earners: if income + concessional contributions exceed $250,000, an extra 15% applies to some concessional contributions. :contentReference[oaicite:24]{index=24}

“What is Division 296 and when does it start?”

The Government has announced a redesigned tax for balances >$3m from 1 Jul 2026, removing tax on unrealised gains. It is not yet law as at Nov 2025—monitor ATO updates. :contentReference[oaicite:25]{index=25}

“Do SMSFs need an annual audit?”

Yes. Trustees must appoint an approved SMSF auditor and complete an audit every year before lodging the SMSF annual return. :contentReference[oaicite:26]{index=26}

“Is there a minimum balance to start an SMSF?”

No legal minimum, but costs can be high. Moneysmart suggests carefully weighing costs and effort versus benefits; larger balances tend to make fixed costs more efficient. :contentReference[oaicite:27]{index=27}

Sources / Official References

Non-financial advice disclaimer

This article is for general information only and is not financial advice. Please check official government resources or a licensed financial adviser before making decisions.

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