Voluntary contributions fuelling SMSF growth: SPAA
The SMSF Professionals' Association of Australia (SPAA) has welcomed an Australian Taxation Office report that shows self-managed super fund (SMSF) assets grew twice as quickly as the total industry for the five years to June 2010.
According to the report, SMSF assets grew by 122 per cent for the five years to June 2010 - double that of the growth for the total superannuation sector (60 per cent).
SPAA chief executive Andrea Slattery said high levels of voluntary superannuation contributions, superior investment performance, and an increase in net rollovers and contributions had contributed to strong growth in the SMSF sector.
"The report also reflects strong confidence in the SMSF sector, which has been aided by the robustness and flexibility of SMSF sector regulation, the policy feedback and input of organisations like SPAA, together with the high professional standards of SMSF advisors, including SPAA accredited SMSF Specialist Advisors and Auditors," Slattery said.
Member contributions to SMSFs were, on average, double that of employer contributions to SMSFs for the five years to 30 June 2009, according to the report.
However, data from the 2009-2010 year (which is not included in the report) suggests member contributions have stalled and are trending downwards.
"The consistently high level of SMSF member voluntary contributions reflects a high level of member engagement, confidence and sound advice; however, we note that the halving of the annual superannuation concessional caps from 2010 has already had a negative effect on savers' attempts to self-fund their retirement," Slattery said.
The control and flexibility of SMSFs will increasingly appeal to younger, educated professionals, she said. Slattery also repeated the SPAA's call for the Government to restore the annual concessional superannuation caps to their pre-2009 Federal Budget levels.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
