The establishment of nearly 5000 SMSFs in the December quarter 2020 is evidence of the growing profile of the funds, according to Superannuation, Financial Services and the Digital Economy Minister Jane Hume.
Addressing the release of the ATO’s December 2020 quarterly SMSF statistical report, Hume said it showed solid growth had taken place across the sector even with the economic impact and financial uncertainty related to COVID-19.
According to the data, 5083 new funds were established in the quarter, while 135 were wound up, giving a total of 4948 net establishments and a total number of 593,790 SMSFs with 1,114,972 members.
At the same time, total estimated SMSF assets increased by 5.1 per cent to $764.2 billion over the quarter from $727.1 billion in the September quarter. Listed shares and cash and term deposits were the leading asset types held at 27 per cent and 20 per cent of total estimated assets, respectively.
Hume said the figures showed overall growth in total fund numbers by an average of 2 per cent each year over the past five years.
“The quarterly report shows increased consumer engagement and the growing desire for Australians to become ‘masters of their own destiny’ by taking their retirement savings into their own hands,” she said.
“The SMSF sector always plays a significant role in the superannuation landscape, with steady growth trends signalling its increasing prominence.
“Already, SMSFs make up 99 per cent of all superannuation funds and hold approximately 26 per cent of all superannuation assets.”
The report also noted the membership size of SMSFs during the 2019 financial year, with two-member funds accounting for 69.5 per cent of the sector and single-member funds accounting for 23.5 per cent. Three and four-member funds only accounted for 7 per cent of the sector, collectively.
The issue around increasing the number of members in an SMSF remains locked in the Senate, where legislation to allow the change has remained stalled since late 2020, despite it being approved by a Senate committee.
Late last week, the federal opposition sought to amend the legislation, adding a requirement that the bill be reviewed 12 months after it is enacted.
