Business News

SMSF growth should bounce back

The number of SMSF establishments should begin to increase over the coming months and into next year, particularly once the industry has settled into the new superannuation environment.

“The impact of the super reforms on the industry is one thing we have been speaking to as last year saw the lowest number of SMSF establishments in five years,” Class chief executive Kevin Bungard told selfmangedsuper.

“Having six months of people not knowing what the rules are and then six months of figuring out what the rules are and trying to implement them has, I think, dampened the establishments over that period.

“It’s going to be interesting to see the statistics in August next year and see whether the number has picked up a little bit because June is usually the peak time to establish.

“But I think longer term the demographics are still favourable for SMSFs and we’ll continue to see SMSFs being established, so hopefully there’s a bit of a bounceback in the next year or so.”

Bungard’s comments come as Class yesterday posted its results for the 2017 financial year, reporting a 37 per cent increase in net profit after tax and a 39 per cent rise in earnings before interest, tax, depreciation and amortisation.

Total revenue for the year grew by 28 per cent.

At 30 June, Class had a total of 143,944 billable accounts, including 140,690 billable SMSFs on the Class Super product.

Class Super’s share of the SMSF market was about 24 per cent at 30 June, using an estimated total market of 594,000 SMSFs.

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