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.