SMSFs continue steady growth in assets

SMSFs growth

The SMSF sector has pushed past the 600,000 mark with more than 1.1 million members after a high number of establishments last financial year.

The total number of SMSFs has continued to grow with more than 603,000 funds registered with the ATO holding more than 1.12 million members after the largest growth in net establishments for the past five years, according to new data released by the regulator.

The ATO today released its SMSF statistical overview for 2020/21, which stated there were 603,432 SMSFs, with 1.123 million members at the end of 2022 financial year, an increase of 4 per cent on 2020/21 and a rise of 8 per cent over the five years from 2017/18.

This increase was driven by a high number of net establishments – 25,656 – which is the highest figure since 2016/17 after 27,713 funds were established and only 2057 were wound up in 2021/22, compared to more than 15,000 wind-ups in each of the preceding five years.

Total SMSF assets, which now account for 26 per cent of the $3.3 trillion in superannuation assets, grew by $25 billion, or 3 per cent for the 2022 financial year, and now total $868.7 billion, having grown by $185.6 billion, or 27 per cent, in the five years to 30 June 2022.

Despite the increase in the number of funds and members, the average age of an SMSF member was still close to retirement at 61, with only around 22 per cent of SMSF members under 49, 23.4 per cent between 50 and 59, 12.9 per cent between 60 and 64 and 41.4 per cent aged 65 and over.

The ATO figures also showed 53 per cent of SMSF members were male and 47 per cent were female and 40 per cent of all members were in retirement phase as at 30 June 2022.

The regulator noted the statistical overview was drawn from the 2020/21 SMSF annual returns that have been lodged, but in addition to data drawn from returns, it also includes 2022 financial year information for registrations, wind-ups, the total number of SMSFs and members as well as demographic data related to those populations, and estimated total SMSF assets and asset allocation.

As such, average SMSF member balances at 30 June 2021 were $791,000, up 26 per cent from 2016/17.

The average member balance for females was $745,000, up 30 per cent from 2016/17, while the average member balance for males was $882,000, up 26 per cent from 2016/17.

The ATO noted 88 per cent of SMSF members had a balance below $1.6 million and 12 per cent reported balances over $1.6 million, but only 1 per cent of all members had a balance of more than $5 million.

Copyright © SMS Magazine 2024

ABN 43 564 725 109

Benchmark Media

Site design Red Cloud Digital