The Australian Taxation Office has released their June 2011 quarterly statistics regarding Self-Managed Super Funds. These statistics highlight the growing interest by individuals and professionals towards the SMSF industry.
I have outlined below some of the key highlights and analysis from the June 2011 statistics:
- Net establishments for the June 2011 quarter were 7,402 (7,466 establishments with 64 wind ups), taking the total number of SMSFs to 456,472.
- The 2010/11 financial reflected net establishments of 32,619 (33,106 establishments with 487 wind ups). This represents at 37% increase in the number of SMSFs established compared to 2009/10 financial year (net of wind ups). The number of new SMSFs established for the financial year is the highest since the ‘one-off’ $1m contribution opportunity in 2007.
- It is interesting to note the significant drop in wind ups of SMSFs. Year-on-year the number of wind ups has been in-excess of 4,000 (up to 7,000 in June 2009). With only 487 SMSFs wound up for the 2011 financial year, has the rationalisation of SMSFs that are not appropriate for certain individuals now finished (i.e. are current & new trustees better informed than ever before about an SMSF being appropriate for them?)
- The average SMSF balance is now $916,746, down from the previous quarter average of $926,196.
- There has been a $3.284 billion increase in cash and deposits for the quarter, representing 27.28% of fund assets to 30 June 2011. However, this total fund assets within SMSFs have been “whittled away” by the decrease in listed shares (down $3.653 billion for the quarter). Shares still however lead the way as the largest single asset class (33.30%).
- The annual statistics (year-on-year) show that High Net Worth SMSFs (balances > $1m) appear have moved back into the share market, with an increase in exposure to listed shares of between 3.26% ($1 – $2m) to 5.33% ($10m+) (NB. based on annualised statistics only available to 2010.)
- The statistical breakdown by fund size is showing a significant increase in the number of $1m+ SMSFs. During the 2010 financial year, 16,360 SMSFs moved into the magical million dollars of fund assets. By contrast, the number of SMSFs under $200,000 is reducing, with 24.2% of funds now with balances under this figure. The biggest drops have been in the under $50k and $50-$100k ranges.
- The strongest growth in SMSF establishments continues to be in the accumulators, with the 45-54 age bracket representing 29.9% of funds established for the quarter and the 35-44 age bracket with 22.7%.