The rate of SMSF establishments fell 8.1 per cent from 7,069 in the 2013 December quarter down to 6789 in the December quarter last year, according to the latest ATO SMSF statistical report.
SMSF Association senior manager of technical and policy Jordan George said the decline in the rate of establishments could be the result of regulatory uncertainty.
“I think people may have been waiting for the Financial System Inquiry Report to be handed down and the government’s response to the issues within that,” said Mr George.
“We’ve also seen a lot of debate over the past couple of months around the value and use of superannuation tax concessions, so these kinds of issues can provide uncertainty.”
The statistics also showed a 6.64 per cent or $36.8 billion increase in total net Australian and overseas SMSF assets during the 12 months to the end of December 2014.
Assets held in limited recourse borrowing arrangements increased slightly by $418,000 or 4.7 per cent.
Mr George said the statistics also showed an uptake of SMSFs by younger demographics.
“In the December establishment statistics, the 45-54 age group had the highest rate of establishment at 32.5 per cent, this was closely followed by the 35 to 44 age group at 29 per cent,” he said.
“It shows that people are starting to establish a SMSF earlier in life, as opposed to the trend of a few years ago where we saw people mainly establishing a SMSF once they were past 50 and had an established base of superannuation.”
This indicates he said that people are using their SMSF as their accumulation vehicle not just a retirement vehicle.
“I think that’s very positive going forward,” he said.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 21 Aug 2016Risks flagged with real estate appraisal valuesBy Miranda Brownlee
- 21 Aug 2016Lawyer challenges ATO view on two fund strategiesBy Miranda Brownlee
- 18 Aug 2017ATO locks in details, addresses panic on real-time reportingBy Katarina Taurian
- 18 Aug 2017Data feeds unreliable for new reporting, says mid-tierBy Miranda Brownlee
- 18 Aug 2017Tax component confusion spurs potential tax liabilitiesBy Miranda Brownlee
- 18 Aug 2017Contributions triple in June quarter, survey showsBy Staff Reporter
- view all
- ATO locks in details, addresses panic on real-time reporting
The tax office has addressed several points of confusion with the new events-based reporting regime, locked in key deadlines, and outlined w...read more
- Data feeds unreliable for new reporting, says mid-tier
With an estimated 20 per cent of SMSFs still encountering errors from data feeds, one mid-tier firm believes the ATO should allow SMSF pract...read more
- view all