The state of play on the world of SMSFs – courtesy of the great collector of SMSF data, the ATO.
As at 30 June 2016 there are:
- 577,000 SMSFs holding $622 billion in assets (29% of all superannuation assets) with more than 1 million members.
- With average assets per member of $590,000, this dwarfs the national average super balance of $154,000.
- New SMSFs are growing at an average annual rate of 6% – that’s 34,600 new funds per annum.
- The fastest growing segments are the younger age groups, showing a desire of these people to take more control of their monies. They will also require support and servicing for many years to come.
- As the baby boomers charge into retirement so SMSFs mirror that: 41% of members are fully or partially in pension phase.
With many SMSFs having multiple members this represents a complexity to be mindful of.
- 6% of SMSFs reported assets are under LRBAs; 91% of which is invested in residential and non-residential property.
- The average administration and operating expense was 0.5% or $5,545.
- The average audit fee was $754 and the median audit fee was $550
Note that at TriSuper Auditors our median audit fee is $440.
- Of the audits submitted with auditor contravention reports:
- 22% were due to loans or financial assistance to members
- 19% due to In-house assets
- 13% due to separation of assets
All in all, a healthy dynamic and growing sector with lots of opportunity and the usual care and pitfalls to be mindful of.
As usual if you have any queries please just call or e-mail me; you can contact me here.