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SMSF establishments soar

The popularity of self-managed superannuation funds (SMSFs) is on the rise with increased establishments and fewer wind ups in the year to June end, data from the ATO shows.

There are currently 597,900 SMSFs with 1.1 million members. Throughout the year ending June 2021, there were 25,312 new SMSFs established and 2187 windups.

This is down on the year prior which saw 21,723 establishments and 15,856 windups of SMSFs.

The total estimated assets of SMSFs are just over $822 billion with 28% of SMSF assets held in listed shares and 18% in cash and term deposits.

Meanwhile, the gender gap of SMSF members is narrowing with 53% of SMSF members being male and 47% female. The majority (86%) of SMSF members are 45 years or older.

The average assets per SMSF member were $696,000 while the average assets per SMSF were $1.3 million. Member contributions into SMSFs were recorded at $12.6 billion while employer contributions were $5.4 billion.

The majority of SMSFs are based in New South Wales (33.5%), followed by Victoria (30.0%), Queensland (17.2%), Western Australia (9.4%), South Australia (6.8%), Tasmania (1.3%), ACT (1.7%) and NT (0.2%).

The recent Class Annual Benchmark Report: SMSF Resilience in a time of constant change revealed that 5.5% more SMSFs are invested in ETFs than two years ago.

Over the last nine quarters there has been 5% growth in ETF investments by those aged 55-74 years.

Around 31% of SMSFs invest in managed funds while around 28% invest in ETFs. Further to this, ETFs are most popular in SMSF trustees aged 25 years old and under.

Read more: SMSFsATO