SMSF sector passes $1tn in assets

According to the latest ATO and Australian Prudential Regulation Authority (APRA) statistics as of 30 September, Australians have entrusted approximately $1.02 trillion of their retirement savings to SMSFs.

Peter Burgess, SMSF Association CEO, said this was a “landmark achievement” and a “powerful testament to the value of choice and the benefits of SMSFs”.

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“SMSFs can provide the ultimate level of control and flexibility which in turn empowers and encourages greater levels of engagement,” Burgess said.

“This extra flexibility and control can manifest itself in many ways including investment flexibility, estate planning flexibility and the ability to structure the fund in a way which best suits the needs of fund members.”

Burgess said although the SMSFA’s mantra is that SMSFs are not for everyone, the latest statistics prove that for individuals who want to take direct control of their retirement savings, whether in the accumulation or decumulation phase of superannuation, they are an effective vehicle.

“The sector had thrived despite a long-running campaign that asserted SMSFs were costly, complicated, and delivered lower investment returns compared with their APRA-regulated counterparts.”

“These were criticisms that the sector – and the association – took extremely seriously, so it was gratifying when research commissioned by the SMSFA showed that an SMSF with net assets of $200,000 can be competitive in terms of costs and investment returns compared with APRA funds.”

He continued that the association was “proud of the sector’s remarkable evolution”, noting the concept of small, member-controlled superannuation funds emerged in 1985 under the term “excluded funds” before SMSFs were introduced in 1999 alongside a more comprehensive regulatory framework.

“Over nearly four decades we have seen the emergence of a dedicated cohort of advisers who have played a critical role in guiding SMSF members through their own unique superannuation journey,” he said.

“The fact that every inquiry into superannuation has given our sector a clean bill of health is testimony to the professionalism they bring when advising their clients.”