SMSF assets held under LRBAs hit approximately $18 billion at the end of the September quarter, the ATO has estimated, representing around 3.0 per cent of the $576 billion in total SMSF assets.
This also represents a jump of $2.4 billion since the June 2015 quarter, for which the ATO estimated SMSF assets held under LRBAs sat at approximately $15.6 billion.
“We continue to see a rise in the proportion of SMSFs with borrowings," said ATO assistant commissioner Kasey Macfarlane. "At June 2014, SMSF borrowings were equivalent to 2.3 per cent of total SMSF assets as compared to 1.9 per cent at June 2013.
“LRBAs represent a portion of these total borrowings. The value of assets held by SMSFs under LRBAs as a proportion of total SMSF assets remained relatively low in 2013-14 at approximately 2.7 per cent,” she said.
Ms Macfarlane added that while a majority of SMSFs are in accumulation phase, in the past five years the ATO has seen an increase of 8.0 per cent in funds moving into full pension phase.
“This shift is reflected by the growth of 32 per cent in SMSF members receiving benefits payments from their fund over the same five-year period. The 2013-14 financial year also saw a rise in total benefit payments to over $30 billion,” she said.
Ms Macfarlane also noted that in the five years to 2014-15, the number of SMSFs has grown by 27 per cent to 557,000.
“For the first time, the average assets of SMSFs grew to over $1 million in 2014, a growth of 23 per cent over five years,” she said.
“In 2013-14, SMSFs also experienced a positive return on assets of 9.8 per cent, the fifth consecutive year of positive returns. This is in line with the trend of positive returns on investment also achieved by APRA funds of more than four members.”
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