ATO stats point to healthy SMSF sector
The recently published statistics on self-managed super funds (SMSFs) point to solid growth, falling costs and sound investment performance, according to the SMSF Professionals' Association of Australia (SPAA).
The Australian Taxation Office (ATO) had published its SMSF statistical overview for the 2010-11 financial year, which provides information on member demographics, growth of the sector, contributions and asset allocation, among other things.
The most recent figures, in a separate report, show more than 35,000 new SMSFs were established in the year to 30 June 2012, significantly more than the previous corresponding period.
"At the same time, in 2012 there was a sharp decline in the number of fund wind-ups, with only 994 closures compared to 5108 in 2011 and 14,699 in 2010," said SPAA education and professional standards director Graeme Colley.
"These factors, together with increases in average SMSF balances, suggest reports that SMSFs are being oversold to unsuitable clients are being overstated."
The report also highlighted that the number of younger individuals setting up SMSFs continues to grow; that the investment performance remains on par with funds regulated by the Australian Prudential Regulation Authority, and that operating costs have fallen.
Colley said the ATO figures are a positive endorsement for SMSFs at a time when regulators and the Government have expressed concerns about the sector.
"The ATO numbers show that the sector continues to perform and grow strongly in line with market expectations," Colley said.
"While SMSFs are not suitable for everyone, there is growing evidence that suggests there is increased understanding of how they are to be used correctly," he added.
"All the evidence suggests the right people are setting up SMSFs and, with the assistance of the appropriate professional specialists, are prudently managing their funds in a responsible way."
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