The ATO’s SMSF statistical report for September shows that the total number of SMSFs jumped by 5,432 during the September quarter this year up to 596,059.
There was a 2.9 per cent jump in the number of SMSFs from the previous September quarter when the number of funds actually fell by 1,646 funds.
The total number of SMSF members also rose, increasing from 2.9 per cent over the 12 months from 1,093,789 up to 1,125,994.
The total amount of net Australian and overseas assets held in SMSFs jumped to $755 billion, a 6.7 per cent increase from the September quarter in 2017.
The top asset types held by SMSFs based on value continue to be listed shares and cash and term deposits, making up 30 per cent and 23 per cent of total estimated SMSF assets, respectively, the ATO said.
BIO, you are such a negative Nellie. But your often quoted comment from many years ago “The SMSF boom like the mining boom is over” appears to be coming true.
Thanks David B?
The comment was a statement of the already obvious trend – establishments were already declining and anyway a broken clock is correct at least twice a day.
At the time I was concerned about the bullish approach of a number of new participants in the market. There had been several high valued acquisitions that had distorted business valuations and vendor expectations. Valuations have now settled.
SMSF administration businesses that provide quality service and support will always be profitable ventures.
A good summary BIO. A single observation can be misinterpreted.
The declining establishment numbers are not good for recent entrants into the market. The declining confidence in the financial services sector, increasing intervention from regulators & continued legislation changes have also contributed to the reduced number of establishments.
Lies, Damn Lies and Statistics. You need to be very careful when quoting statistics from the most recent ATO statistical reports. They are always updated with fund establishments increasing and fund wind ups also increasing. The September quarter always significantly understates wind ups. There are a lot of funds closed in the June & September quarters and these are not reported until annual returns are lodged.
My take on the statistics is the trend for fund establishments (to be clear this is gross establishments) is down.
10 years ago fund establishments were growing at around 33k funds pa (9.5%),
5 years ago fund establishments were 37k pa (7.7%),
2 years ago fund establishments were 31k pa (5.7%), and
in the last 12 months (subject to future revisions by the ATO) year on year establishments fell below 25k funds pa.
Conversely the number of fund wind ups is increasing – due to greater enforcement by the ATO and because the baby boomers who drove the large growth in this sector are departing this earth and / or deciding to close their funds as their fund assets decline.
These observations are not new.