The average contribution made by SMSFs in the last quarter almost tripled from the previous quarter, with further increases expected in the next few months.
The SuperConcepts SMSF Investment Patterns Survey for December 2016, based on some 2,800 funds, showed that the average contribution inflow for the quarter increased from $3,040 to $8,550.
The rise in contributions is not surprising, according to SuperConcepts executive manager of technical and strategic solutions Philip La Greca, given the fact that trustees have to make large non-concessional contributions before 30 June 2017.
“The current non-concessional amounts apply for the remainder of this financial year and investors are taking advantage of the limited time available to them. We expect a continued uplift in the level of non-concessional contributions in the lead-up to July 1,” Mr La Greca said.
The average benefit made by SMSFs also increased, jumping from $13,220 in the September quarter to $16,260 in the December 2016 quarter.
SuperConcepts said the increase could be the result of members trying to reduce their pension balances following the introduction of new Centrelink asset test rules that apply from 1 January 2017.
“In addition, this can also be the result of trustees implementing withdraw and re-contribution strategies to take advantage of the current contribution caps,” the company said.
The higher contribution levels also saw an increase in the proportion of cash assets in SMSFs, with the average allocation to cash rising from 18.1 per cent in the September quarter to 18.4 per cent in the December quarter, Mr La Greca said.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 08:20Data feeds unreliable for new reporting, says mid-tierBy Miranda Brownlee
- 08:00Tax component confusion spurs potential tax liabilitiesBy Miranda Brownlee
- 08:00Contributions triple in June quarter, survey showsBy Staff Reporter
- 17 Aug 2017Industry questions ATO’s capacity for new reportingBy Miranda Brownlee
- 17 Aug 2017Qld succession law changes tipped to impact SMSFsBy Miranda Brownlee
- 16 Aug 2017Contribution limits restricting future balances, warns mid-tierBy Staff Reporter
- view all
- 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
- Tax component confusion spurs potential tax liabilities
A lack of understanding around taxable and non-taxable components in super funds could be exposing SMSF clients to unnecessary tax liabiliti...read more
- Contributions triple in June quarter, survey shows
The average contribution amount from SMSF trustees tripled for the June 2017 quarter, with super members looking to maximise their contribut...read more
- Industry questions ATO’s capacity for new reporting
With events-based reporting set to generate huge amounts of data, concerns have been raised about whether the ATO’s systems will be able t...read more
- view all