The SMSF Association has released their review of the Australian Taxation Office’s 2016-17 statistical overview of SMSFs. It reveals a sector that has not only performed well but provides a positive outlook for its future growth and strong performance.
So what are the key takeaways for SMSFs?
- The average SMSF establishment size rose to $521,000 compared with the relatively stable levels of $370,000 in the previous four years – a 38% increase.
- SMSFs made an average return of 10.2% compared with the 9.1% return for APRA-regulated funds.
- SMSF expenses fell eight basis points, largely attributable to increased use of technology and software in fund administration.
- Total contributions to SMSFs were $41.8 billion up from $31.6 billion and an increase of 32% over 2016.
- SMSF benefit payments increased by 31% from $35 billion to $46 billion.
- Of SMSFs established in the 10 years prior to 30 June 2017, 88% were still in existence at that date.
- The average age brackets of members who are establishing SMSFs is clearly skewed to younger demographics.
Disclaimer: The information contained in this document is provided for educational purposes only, is general in nature and is prepared without taking into account particular objective, financial circumstances, legal and tax issues and needs. The information provided in this article is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to your individual circumstances. While SMSF Association believes that the information provided in this article is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001.