In a statement responding to the announcement that CareSuper is launching an initiative to help wind up SMSFs, Olivia Long, chief executive of Xpress Super and SuperGuardian, said the ATO figures do not reflect the picture painted by the industry fund.
“ATO figures for the five years to 30 June 2013 show that, on average, for every five SMSFs established, one was wound up, with gross SMSF establishments of 34,800 a year and wind-ups of 7,800 a year,” the statement from SuperGuardian said.
“This hardly presents a picture of disillusionment”, Ms Long added.
While SMSF wind-ups are occurring, Ms Long said there are other reasons behing the trend, including death of a trustee, taxation benefits for trustees no longer being relevant, and overseas relocation.
“The reality is there is no hard and fast data on why SMSFs are being wound up. What we do know, conclusively, is that far more are being established than are being closed down, and the vast majority of these new SMSF members are coming from the ranks of the APRA-regulated funds,” she said.
Typical Industry Fund BS being reported as news. It funny how there are strict penalties for advisers giving ‘misleading’ or ‘deceptive’ advice but industry funds can make all sorts of unsubstantiated claims that rarely get questioned – but get plenty of airplay.