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ATO, Superannuation

SMSFs recover after wind-up spike

SMSF sector growth September

Growth in the SMSF sector remained strong in the September quarter, despite a dip in the net number of funds established in the previous quarter.

The ATO statistical report for the September quarter shows there has been overall growth in the SMSF sector with the total number of funds increasing to 598,582 despite a spike in the number of funds wound up in the previous quarter.

The SMSF regulator’s “Self-managed super fund quarterly statistical report – September 2019” revealed for that quarter, 5778 SMSFs were set up, with only 114 funds wound up, resulting in a net establishment of 5664 funds across the sector.

By contrast, 4952 funds were set up in the June quarter, with 5264 SMSFs wound up in the same period, which resulted in a net establishment figure of -312.

In addition, the report revealed the total number of members of SMSFs had risen to 1,124,699 in the September quarter from 1,112,438 in the previous quarter.

It also showed the total estimated assets of SMSFs for the September quarter stood at $746 billion, up from $742 billion in June.

The top asset types held by SMSFs, by value, in the September period were listed shares (representing 31 per cent of total estimated SMSF assets) and cash and term deposits (21 per cent of total estimated SMSF assets).

The highest proportion of funds established in the same quarter were completed by individuals aged 35 to 44 years old, who represented 33.2 per cent of the number of funds established.

Individuals aged 45 to 49 years old represented the next highest contributors to the number of new SMSFs in the most recent quarter, completing 17.8 per cent of the total SMSFs established, followed by individuals aged 50 to 54 years old, who were responsible for 14.8 per cent of the funds established in the same quarter.

According to the report, the proportion of 60 to 69 year old establishing a new SMSF in the September quarter fell to 7.3 per cent from 9.2 per cent in the previous quarter.

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