SMSFs continue to dominate

New data analysed by the Australian Taxation Office (ATO) has confirmed the rise and rise of the self-managed superannuation fund (SMSF) sector in Australia.

The data, gathered as part of the Super System Review, confirmed the SMSF sector remains the largest sector of the Australian superannuation industry, accounting for 99 per cent of the number of funds and over 30 per cent of the $1.23 trillion total in super assets.

The ATO analysis said that as at 30 June 2010, there were around 425,000 SMSFs and almost $387 billion in assets. It said there were also approximately 810,000 members in the SMSF sector, representing about 7 per cent of roughly 11.6 million members in Australian superannuation funds.

The analysis said the data had revealed that the SMSF sector responded to government initiatives or changing economic circumstances, particularly in relation to total asset holdings and shifts in asset types held.

It said this was not inconsistent with the general view that SMSF trustees establish SMSFs for control and flexibility.

The ATO analysis also noted that in recent years there had been a trend for members of new SMSFs to be from younger age groups than those of the total SMSF member population.

However, it said that overall, SMSF members compared to non-SMSF fund members tended to be older and have both higher average balances and higher average taxable incomes.