The latest ATO data has confirmed sharp growth in the SMSF sector, with new funds established at record levels and a further noticeable shift toward a younger member base.
The ATO’s “SMSF quarterly statistical report June 2024,” released last week showed 8613 new funds were created during the June quarter, marking the highest quarterly growth since the publication of ATO SMSF data in December 2018. This was offset by 2954 wind-ups, resulting in 5659 net establishments.
For the 2024 financial year, 32,747 new funds were registered, in line with predictions made at Class Ignite 2024 that anticipated over 30,000 SMSF establishments. After accounting for 5702 wind-ups, the net figure of 27,045 new funds more than doubled the 12,458 net SMSFs established in the previous financial year.
The total number of SMSFs now stands at 625,609, with 1,152,792 members, reflecting a 4.5 per cent rise in both funds and members compared to 2023.
The data also revealed another finding which aligned with the Class “2024 Annual Benchmark Report”, that younger members are a key factor in sector growth, with a significant number of new funds coming from individuals below the average SMSF member age at establishment of 45.
Reflecting on the latest statistics the SMSF Association said: “When taking a closer look at the new funds established during the June quarter, 35.9 per cent of these new members were aged [between 35 and 44]. This further highlights the ongoing trend of a younger SMSF demographic, particularly when compared to the fact that at 30 June 2024, the percentage of members in this age cohort was only 11.7 per cent.”
The data also showed over one third of SMSF members are within middle to high-income brackets, earning between $80,000 and $150,000 annually.
Further female membership saw a modest rise, increasing from 47.1 per cent to 47.4 per cent during the year.
SMSF net assets, excluding borrowings and liabilities, grew by over $5 billion in the June quarter, reaching $957 billion. Non-residential property added $2.9 billion, while residential property rose by $1.6 billion.
Steady growth was recorded in listed and unlisted trusts, along with cash and term deposits, which together contributed more than $1.3 billion. However, the largest decline occurred in listed shares, which fell by $3.6 billion.
Geographically, SMSFs remained stable, with Queensland increasing its share from 16.7 per cent to 17.3 per cent, and Western Australia rising from 9.2 per cent to 9.3 per cent, the only states to record growth in this period.
