More data needed on SMSFs

The Australian Institute of Superannuation Trustees (AIST) has called for more performance data to be gathered on self-managed superannuation funds (SMSFs) due to increased gearing among SMSF users and falling share market returns.

AIST policy and research manager Andrew Barr voiced his concerns after the release of a statistical report on SMSFs, which said that whilst the information gathered by the Australian Taxation Office (ATO) was welcome, it was insufficient.

“The information published by the ATO is still not as comprehensive as that published by APRA (Australian Prudential Regulation Authority) in relation to APRA-regulated funds, and much of the public scrutiny to which large funds are properly subjected to does not apply in the case of SMSFs,” he said.

Performance data such as average annual returns have been published for many years on APRA-regulated funds such as industry, public sector and corporate super funds, but SMSFs are not covered by APRA. The SMSF sector manages more than $300 billion in super assets and is rapidly expanding.

“With rising interest rates, falling markets and the heavy marketing of instalment warrants to those operating self-managed funds, we need to know how this sector is performing relative to other key super sectors,” Barr said.

“There needs to be more information made available to assess [the] role and impact [of SMSFs] in providing retirement income for a growing number of Australians.”