Retirement
Female SMSFs the winners when it comes to balance growth
SMSF members enjoyed an average balance growth of 26 per cent in the five years to 2016, but women’s accounts did even better than the average.
Female SMSFs the winners when it comes to balance growth
SMSF members enjoyed an average balance growth of 26 per cent in the five years to 2016, but women’s accounts did even better than the average.
New figures from the Australian Taxation Office (ATO) reveal that male SMSF members have seen their balances grow by 22 per cent in the five years to 2016 and women have seen their balances grow by 30 per cent.
That’s according to the ATO’s statistical overview for 2015-16.
Reflecting on the results, ATO assistant commissioner, Kasey Macfarlane said the data shows the sector is experiencing continuous growth together with positive returns, and an increasing number of funds and members.
“SMSFs account for 99.6 per cent of all superannuation funds and 30 per cent of the $2.3 trillion in total superannuation assets in Australia,” Ms Macfarlane said.
“The annual statistics highlight the growth of the SMSF sector. In the five years to 2016-17 we have seen the number of SMSFs grow by 26 per cent to 597,000, with total assets worth $697 billion.”
At 20 June 2016, the average SMSF member balance was $599,000 – approximately 11 times the size of an average non-SMSF members’ $56,000 balance.
At the same time as members saw their balances increase, they were boosting their contributions by 21 per cent on average – “significantly higher” than the 16 per cent growth in total contributions to all super funds.
However, employer contributions made to SMSFs fell by 5 per cent in the five years to 2016.
Continuing, Ms Macfarlane said SMSFs in 2015-16 saw a return on assets of 2.9 per cent, continuing a five-year trend of positive growth.
“This year we revised our data set used to determine SMSF trustee structure,” she continued.
“Last year we reported 77 per cent of SMSFs had an individual trustee structure, however moving to this more reliable data set has resulted in significant changes. At 30 June 2017, 57 per cent of SMSFs had a corporate trustee.”
SMSFs are also getting younger
While the median age of new members in 2012 was 50, by 2016 the median age was 47, the assistant commissioner related.
“This tells us that more trustees are entering the SMSF sector at an earlier stage in their working life than in previous years.
As for funds established in 2016; 75 per cent of members were younger than 55, compared to 65 per cent of members in 2012.
“The annual overview also reports that in 2015-16, 7 per cent of SMSFs held assets under limited recourse borrowing arrangements (LRBAs), slightly higher than the prior year of 6 per cent.”
And they’re getting richer
According to an ATO snapshot of funds since 2012, funds are also getting wealthier. Where funds with less than $200,000 made up 51 per cent of the SMSF population in the 2012 financial year, they made up 20 per cent in the 2016 financial year.
Meanwhile, the population with fund balances of more than $500,000 grew from less than a quarter to nearly a half.
Self managed super fund
Superannuation guarantee to be paid on government paid parental leave, says ASFA
The Association of Superannuation Funds of Australia (ASFA) has hailed the government's decision to include Superannuation Guarantee payments with its Paid Parental Leave policy as a critical step ...Read more
Self managed super fund
SMSF experts advise against hasty reactions to potential super tax changes
As the Australian Government proposes a new tax measure on superannuation earnings for balances exceeding $3 million, experts from the self-managed super funds (SMSF) sector are urging members not to ...Read more
Self managed super fund
Federal government announces changes to superannuation contribution caps
The Federal Government has announced changes to the superannuation contribution caps, impacting self-managed super funds (SMSFs) and their members from 1 July 2024. Read more
Self managed super fund
SMSF Association calls for joint effort to tackle early super access
The SMSF Association is calling on a collaborative approach including the Government, the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC), and the ...Read more
Self managed super fund
Rest Super members file class action over alleged insurance premium deductions
Shine Lawyers has initiated a class action lawsuit against Rest Superannuation (Rest), alleging the unlawful deduction of income protection insurance premiums from members' superannuation accounts. Read more
Self managed super fund
Debunking a superannuation tax myth: SMSF Association clarifies the impact on Aussie farms
In the ongoing debate about a proposed new tax targeting superannuation funds exceeding $3 million, the SMSF Association has stepped in to challenge claims from the Association of Superannuation Funds ...Read more
Self managed super fund
Is an SMSF right for you?
When it comes to planning for retirement, one of the most significant decisions Australians have to make is how to manage their superannuation. Read more
Self managed super fund
SMSF growth continues after pandemic peak
The statistics have begun to change coming out of the COVID-19 pandemic, according to new findings from Australian Investment Exchange Limited (AUSIEX). Read more
Self managed super fund
Superannuation guarantee to be paid on government paid parental leave, says ASFA
The Association of Superannuation Funds of Australia (ASFA) has hailed the government's decision to include Superannuation Guarantee payments with its Paid Parental Leave policy as a critical step ...Read more
Self managed super fund
SMSF experts advise against hasty reactions to potential super tax changes
As the Australian Government proposes a new tax measure on superannuation earnings for balances exceeding $3 million, experts from the self-managed super funds (SMSF) sector are urging members not to ...Read more
Self managed super fund
Federal government announces changes to superannuation contribution caps
The Federal Government has announced changes to the superannuation contribution caps, impacting self-managed super funds (SMSFs) and their members from 1 July 2024. Read more
Self managed super fund
SMSF Association calls for joint effort to tackle early super access
The SMSF Association is calling on a collaborative approach including the Government, the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC), and the ...Read more
Self managed super fund
Rest Super members file class action over alleged insurance premium deductions
Shine Lawyers has initiated a class action lawsuit against Rest Superannuation (Rest), alleging the unlawful deduction of income protection insurance premiums from members' superannuation accounts. Read more
Self managed super fund
Debunking a superannuation tax myth: SMSF Association clarifies the impact on Aussie farms
In the ongoing debate about a proposed new tax targeting superannuation funds exceeding $3 million, the SMSF Association has stepped in to challenge claims from the Association of Superannuation Funds ...Read more
Self managed super fund
Is an SMSF right for you?
When it comes to planning for retirement, one of the most significant decisions Australians have to make is how to manage their superannuation. Read more
Self managed super fund
SMSF growth continues after pandemic peak
The statistics have begun to change coming out of the COVID-19 pandemic, according to new findings from Australian Investment Exchange Limited (AUSIEX). Read more