SMSFs surpass $1tn milestone

The latest statistics from the Australian Taxation Office (ATO) show the total assets held within self-managed superannuation funds (SMSFs) hit $1.02 trillion at September end.

The total SMSF members grew to 1,173,867 in over 630,000 SMSFs, with over 10,200 new entrants in the quarter and 165 exits. Sticking with tradition, the vast majority of SMSFs have two members at close to 70%.

Residents in New South Wales and Victoria remain most likely to have an SMSF, together making up more than 60% of the total.

Together, they have more than $1 trillion in retirement savings, the bulk of which is invested in listed shares. This is followed by cash and term deposits and non-residential properties.

The average assets per SMSF sits at $1.55 million while the median is about $877,500.

SMSF Association chief executive Peter Burgess said while the figures are estimates, they underscore the confidence Australians place in SMSFs. He believes it is a powerful testament of the value of "choice" and the benefits of SMSFs."

"SMSFs can provide the ultimate level of control and flexibility which in-turn empowers and encourages greater level of engagement," Burgess said.

"This extra flexibility and control can manifest itself in many ways including investment flexibility, estate planning flexibility and the ability to structure the fund in a way which best suits the needs of fund members."

He has however highlighted that SMSFs are not designed for everyone.

"[it is] for those individuals who want to take direct control of their retirement savings, whether in the accumulation or decumulation phase of superannuation, they have proved a very effective vehicle," he added.

"Over nearly four decades we have seen the emergence of a dedicated cohort of advisers who have played a critical role in guiding SMSF members through their own unique superannuation journey.

"The fact that every inquiry into superannuation has given our sector a clean bill of health is testimony to the professionalism they bring when advising their clients."

The new stats come amid the looming superannuation tax, which will impose an extra 15% tax for any super balance that tops over $3 million when it comes into effect.

The proposal, passed the lower house last month, was on its way to the Senate only to be reported that it could be shelved until after the next federal election.

"It appears the government has come to the realisation that they don't have the support of the Senate cross bench to get this bill through, and they now have other priorities," Burgess said.