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Comparing super sectors ‘futile’

Reporter
16 January 2014 — 1 minute read

The latest figures from the ATO prove the futility of comparing super sectors, according to the SMSF Professionals’ Association of Australia.

Comparing the investment performance of SMSFs with other types of superannuation funds is “fraught with danger”, said SPAA’s director, technical and professional standards, Graeme Colley.

“While methodologies may be comparable, the data collected from the different types of funds is not the same,” Mr Colley said.

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“It’s similar with fees. Comparing the operating expenses of SMSFs compared with other types of superannuation funds is difficult. While the ratios used in the ATO statistics may be comparable, the data collected from the different types of funds is not the same.”

Mr Colley has recently commented on the ATO’s data on limited recourse borrowing arrangements, saying the statistics show there is no indication that borrowing numbers are either “exponential or irresponsible”.

“SPAA’s understanding of the current situation is that borrowing has not increased significantly since 2012 and remains a very small proportion of the total value of loans made by banks and other financial institutions,” he said.

Comparing super sectors ‘futile’
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