Powered by MOMENTUM MEDIA
subscribe to our newsletter

SMSF market enjoys continued growth

09 January 2013 — 1 minute read

The self-managed super fund (SMSF) sector saw continued solid growth in 2011/2012, with sound investment and falling costs, according to the Australian Taxation Office (ATO) Statistical Overview.

Most recent figures show that 35,276 net new funds were established in the period, compared to 28,031 in the previous year.

Graeme Colley, SMSF Professionals' Association of Australia (SPAA) education and professional standards director, said the ATO overview is a positive endorsement of SMSFs at a time when regulators and government have expressed concerns about the sector.

Advertisement
Advertisement

"Although the 2011/2012 figure is the highest recorded number since these reports began in 2008, the more important factor is that the percentage increase in the number of net establishments compared with previous years appears to be slowing (a 26 per cent increase for 2012 compared to a 84 per cent increase in 2011)," he said.

At the same time, in 2012 there was a sharp decline in the number of fund wind-ups, with only 994 wind-ups compared with 5,108 in 2011 and 14,699 in 2010.

"These factors, together with increases in average SMSF balances, suggest reports that SMSFs are being oversold to unsuitable clients are being overstated," he said.

The ATO statistics also found the number of younger individuals setting up SMSFs continues to grow, with a significant increase in the number of members between the ages of 25 and 54.

"The ATO numbers show that the sector continues to perform and grow strongly in line with market expectations. While SMSFs are not suitable for everyone, there is growing evidence that suggests there is increased understanding of how they are to be used correctly," Mr Colley said.

"All the evidence suggests the right people are setting up SMSFs and, with the assistance of the appropriate professional specialists, are prudently managing their fund in a responsible way," he said.

SMSF market enjoys continued growth
smsf logo
smsfadviser logo

Are you up to date with the legislative changes from 1 July? Contribution cap increases, super guarantees, age increases, SG rate increases. The budget announcement changes. Don’t be caught off guard by your clients’ questions. Prepare for any scenario with the SMSF Foundations course. 21 CPD hours available. Learn more

join the discussion

Latest poll

Do you have clients that are aged 65 or 66 planning to trigger the bring forward rules?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

×

Warning

JUser: :_load: Unable to load user with ID: 868