SMSF LRBA assets show huge surge
Assets held by self-managed super funds (SMSF) under limited recourse borrowing arrangements (LRBA) have been revised to $8.3 billion from $2.6 billion in the June 2013 quarter estimates, the Australian Taxation Office (ATO) said.
The ATO June 2014 quarterly SMSF statistical report said that while this revision is partly due to real growth of LRBAs over the 2012/13 financial year, it is mostly because of ATOs new approach to collecting LRBA data and changed labels on the SMSF annual return.
The ATO added that while the new method makes it difficult to accurately report the growth of LRBAs over the past year, it does provide a more accurate way of forecasting future growth.
The new method means some amounts formerly reported as property assets are now being reported as LRBA assets. This means real property assets have taken a $6 billion hit while LRBA assets jumped by $5.6 billion.
Under the new data collection method, the ATO estimates assets held under LRBAs have risen to $8.7 billion as at June 2014.
The report also showed there are about 534,000 SMSFs, a six per cent increase, and assets total $557 billion, which is a 12.5 per cent increase since June 2013.
Recommended for you
ASIC has called on superannuation funds to improve their oversight of advice fee deductions following an investigation of 10 trustees that found $990 million was charged in one year.
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
Underestimating the cost of insurance by almost $75,000 in a Statement of Advice is among multiple reasons that a relevant provider has faced action from the FSCP.
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
