The SMSF quarterly statistical report for December 2024 showed that in the three months from September 2024, there were nearly 9,000 new entries. The total number of SMSFs now sits at 638,411 an increase over the six months from June 2024 of nearly 20,000 (619,216).
The total number of SMSF members increased to 1,184,287, up nearly 40,000 from the June quarter statistics (1,146,460).
Additionally, the dwindling number of exits from the sector demonstrates that more members have maintained their SMSFs after reaching retirement age. In the December 2024 report, only 217 exits were recorded, compared with 1,183 in the statistical review from December 2023.
Peter Burgess, chief executive of the SMSF Association, said new fund establishments are on track to exceed 40,000 this financial year.
“While much of this growth is being driven by younger superannuants looking for higher levels of control, it does reinforce the importance of advisers being able to provide specialist SMSF advice,” he said.
“While many SMSF trustees may be unadvised initially, they will gravitate to advice over time as their circumstances change. Recent research released by the University of Adelaide provides further evidence of the important role advisers can play in helping SMSF trustees avoid investment mistakes and achieve better retirement outcomes.”
Shelley Banton, head of technical for ASF Audits, said the number of exits at the end of the December 2024 quarter showed a 33 per cent decrease since the September 2024 quarter.
“However, we need to consider that these numbers haven’t been finalised yet because of the time lag between when the wind-up occurs and when the ATO receives the notification from the SMSF,” Banton said.
“On the other hand, the figure for June 2024 shows a 30 per cent decrease from June 2023 to 7,998 exits, demonstrating a definite decline in the number of funds winding up. The June 2023 statistics further show that the average period for entry to exit has increased by 9.4 per cent, with members staying in their funds for an average of 15.1 years as opposed to 13.8 years in 2022.”
She added that while these figures further supported the reduced number of wind-ups, SMSFs also enjoyed a 10.1 per cent total return on assets for 2023, contributing to increased member satisfaction.
“The results have seen a growing trend of younger members establishing SMSFs with access to streamlined technology, the ability to pool resources, and reducing fund closures,” Banton said.
“It’s good news for the SMSF industry, which continues to provide members with high-level compliance support, tailored investment advice and educational initiatives.”
The latest statistics also showed that the total estimate of assets of SMSFs also kept growing with the report revealing the sector now had more than $1.02 trillion in Australian and overseas assets, an increase of around 6 per cent.
The top types of assets held by SMSFs by value were listed shares (26 per cent of total estimated SMSF assets), and cash and term deposits (17 per cent). The average assets per fund was $1,550,571 with the average assets per member sitting at $835,265.
Two-member funds remained the most common structure, accounting for more than 68 per cent of all SMSFs. Males account for 53 per cent of total membership while female membership has remained steady at 47 per cent. Additionally, 85 per cent of SMSF members are 45 years or older.
