APRA funds still struggle against SMSF competition
The latest ATO figures indicate APRA-regulated funds are still experiencing considerable leakage from their funds to SMSFs says the SMSF Professionals' Association of Australia.
SPAA director of technical and professional standards Graeme Colley said statistics from the ATO show that in the five years to 30 June 2013, $75.6 billion was rolled into SMSFs and only $19.9 billion was rolled out of SMSFs.
“On an annual basis, $15.1 billion rolled into SMSFs and $4 billion rolled out of SMSFs,” he said.
“These numbers hardly suggest an SMSF sector in decline or even treading water – indeed, what they comprehensively show is that SMSFs retain their strong appeal.”
Mr Colley said the ATO figures also show SMSFs fulfilling their role in providing retirement incomes and meeting the government policy objectives of superannuation.
“In the 2009 financial year, income streams amounted to 75.7 per cent of all benefit payments from SMSFs, of which Transition to Retirement Income Streams (TRIS) amounted to 9.1 per cent of total payments,” said Mr Colley.
“By the 2013 financial year the proportion of income streams paid from SMSFs had increased to 93.2 per cent, of which 11.4 per cent were TRIS and just 6.8 per cent were lump sums, compared with 13.8 per cent of lump sums in the 2009 financial year.”