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Retirement

SMSFs stick with cash as rates continue to fall

By Cameron Micallef · January 02 2020
Reading:
egg

Retirement

SMSFs stick with cash as rates continue to fall

By Cameron Micallef
January 02 2020
Reading:
egg
smsfs stick with cash as rates continue to fall

SMSFs stick with cash as rates continue to fall

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By Cameron Micallef · January 02 2020
Reading:
egg
smsfs stick with cash as rates continue to fall

Despite the Reserve Bank of Australia reducing the official cash rate twice during the September quarter and effectively penalising savers, SMSF members have only marginally reduced their cash balances, according to official figures.

According to the ATO’s latest quarterly statistics, SMSF assets invested in cash and term deposits fell marginally from $155,118 million to $154,526 million between the June and September quarters.

The data also revealed that while cash has gone down marginally, SMSFs are investing more in property despite declines in property prices this year and new rules impacting LRBA holders.

As interest rates continue to fall for the private sector, it is having a minimal effect on the SMSF lending sector as credit providers fail to pass on savings to investors. 

In spite of this, assets invested in residential property jumped from $34,895 million in the June quarter to $35,024 million in the September quarter, while assets held in LRBAs increased from $42,913 million to $43,072 million between the June and September quarters.

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Finally, the data showed SMSF investors are taking advantage of strong growth in Australian and overseas equities.

In the September quarter, SMSFs held $227,588 million in domestic listed shares, up from $224,371 million in June, while investment in foreign equities grew to $8,876 million in September up from $8,751 million in the June quarter.

On a broader note, the statistics revealed that over 5,700 new SMSFs had been established in the September quarter, taking the total number of SMSFs up to 598,582.

SMSFs stick with cash as rates continue to fall
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About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

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