Mr Conway argued that while administration could be more expensive for funds with lower balances, the trustees may decide to accept such costs based on the performance of the fund.

“The idea that fund performance should solely be measured by relative costs of administration misses the point,” said Mr Conway.

“Most people setting up an SMSF do so because they want control of their investments. Many trustees minimise costs by performing some of the SMSF functions themselves.”

Mr Conway also said unnecessary regulation should be avoided as it further increased the administration costs of SMSFs.

“The regulator needs to focus on issues like the quality of advice, removing conflicts of interest in the system and further education of trustees, not setting arbitrary figures,” said Mr Conway.

“As we know, the regulator is required to respond to and enforce government policy. We are hopeful the new government will provide clear guidance to the regulators.”