Super changes give SMSF trustees jitters

SMSF/super/amp/

4 August 2016
| By Malavika |
image
image image
expand image

Changes to superannuation proposed in the 2016 Federal Budget appears to have shaken confidence in the self-managed superannuation sector, which recorded the lowest level of contributions for a June quarter since 2012, according to a survey.

AMP SMSF business, SuperConcepts, released the SMSF Investment Pattern Survey, which showed average contributions to an SMSF declined by 38 per cent from the June quarter in 2015 to the June quarter in 2016.

SuperConcepts executive manager, technical and strategic solutions, Phil La Greca, said the lowest contribution levels were despite higher concessional caps compared to last year and the superannuation guarantee levels at 9.5 per cent instead of nine per cent.

"There's obviously the uncertainty of these measures that's had a major impact on that," he said.

"We are still in a position where funds are now paying more out than they are seeing contributions. That's pretty much to be expected because of the ageing demographic.

"We have more people in pension drawing more than contributions flowing in so the growth of the sector, shall we say, has been driven more by more by investment performance in terms of dollars as distinct from the number of funds," La Greca said.

La Greca said average contributions to SMSFs dipped over the financial year, particularly in December, March and June quarters, compared to previous corresponding years.

Contributions slid from $17,320 in the June quarter 2015 to $10,748 in June quarter 2016.

While many SMSF trustees attained some form of advice through a planner or an accountant, there were a large number of trustees who were possible out on their own.

"That's part of the big issue. Do they actually understand what the changes are, do they understand the consequences?" La Greca asked.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 1 week ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

1 week 6 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

3 weeks 2 days ago

ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay....

3 days 21 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5