Jump in number of new SMSFs

Established SMSFs SMSF asset allocation SMSF quarterly statistical report September 2023

The September quarter saw the highest number of net SMSFs registered with the ATO in five years, with wind-ups falling to historical lows.

The latest ATO statistical report has revealed a record net gain of new SMSFs established during the September quarter, with funds being increasingly registered by younger individuals.

According to the ATO’s “SMSF quarterly statistical report September 2023” released today, 7836 new SMSFs were established in the quarter, while only 109 funds were wound up during the period, which was the lowest wind-up figure since June 2018, for a net record establishment figure of 7727.

The June 2021 quarter saw a higher total of funds registered (8340), however, 1090 funds were also wound up during that quarter, representing a net gain of 7320 new funds.

This brings the total number of SMSFs to 611,961, consisting of 1,142,957 members, an increase of 17,917 members since the June quarter.

The ATO figures also showed 36 per cent of the new funds were established by members in the 35-44 age range, with women representing a larger share (38 per cent) than men (35 per cent) of those who started funds in this age cohort. However, of the new SMSFs registered across all age ranges during the September quarter, 54.9 per cent were started by men.

Additionally, of the new funds established by men, about a quarter had a taxable income of $100,000 to $150,000, while 18 per cent of women who registered SMSFs were from this income range. Sixty-three per cent of new female SMSF members had a taxable income of between $0 and $100,000 compared to 40 per cent of men for the same income range.

New South Wales and Victoria constituted the lion’s share of the newly-established SMSFs, with over two-thirds (66.9 per cent) of new funds started in these states.

Asset allocations across SMSFs remained largely static with slight decreases in listed and unlisted shares, cash and term deposits, and overseas shares and overseas residential real property.

Over $1.5 billion was allocated to limited recourse borrowing arrangements over the quarter, while more than $2.3 billion was invested in non-residential real property.

At the same time, $8 million moved out of cryptocurrencies held within SMSFs since June 2023, reducing the total level of cryptocurrency assets to $992 million and continuing a downward trend from its highest figure of $1.594 billion in June 2021.

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