SMSF wind-ups drop off in FY21

There has been a distinct drop in the number of wind-ups of self-managed super funds (SMSFs) in FY21, with the number falling to around 2,000 from more than 15,000 in the previous year.

According to quarterly data from the Australian Taxation Office (ATO), there were 2,187 wind-ups of SMSFs in FY21.

This was comprised of 456 in September 2020, 760 in December 2020, 699 in March 2021 and 272 in June 2021.

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The figures compared to more than 15,000 wind-ups in FY20 and a peak of almost 25,000 in FY18.

This meant the total net SMSF establishments during FY21 was 23,125 compared to 5,867 in the previous year.

However, the ATO noted the number might yet increase as there was often a time lag for requests received during the June quarter.

Table 1.1: Population  – annual data

   

Year ended

Establishments

Windups

June 2021

25,312

2,187

June 2020

21,723

15,856

June 2019

20,341

17,252

June 2018

25,332

24,898

June 2017

30,306

14,849

June 2016

32,760

13,691

Source: ATO

In total, there were 597,900 SMSFs with 1.11 million members and estimated assets of $822 billion. This compared to 574,775 SMSFs in FY20 and 1.07 million members.

Looking at membership, some 40.5% of SMSF members had an annual income of less than $40,000 a year and 13.7% had an income between $150,000 to $500,000.

The most-common age was 60 to 64-year olds, both for men and women while 3.3% of members were aged below 34.

The most-popular asset held was listed shares, representing 28% of total SMSF assets, followed by cash and unlisted trusts.

In July, research from Investment Trends and Vanguard found SMSF assets recovered to an all-time high of $787 billion, up from $694 billion in March 2020.




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