SPAA says data counters mis-selling allegations
Recently published Australian Taxation Office (ATO) data covering self-managed superannuation funds (SMSFs) represent a positive endorsement of the sector and do not support suggestions that they are mis-sold.
That is the analysis of SMSF Professionals' Association of Australia (SPAA) educational and professional standards director, Graeme Colley, who said the figures for the 2010-11 financial year had pointed to more than 35,000 new SMSFs being established in the year to 30 June 2012 and a sharp decline in the number of wind-ups.
He said the data had shown that there were only 994 closures compared to 5108 in 2011 and 14,699 in 2010.
"These factors, together with increases in average SMSF balances, suggest reports that SMSFs are being oversold to unsuitable clients are being overstated."
The report also highlighted that the number of younger individuals setting up SMSFs continues to grow; that the investment performance remains on par with funds regulated by the Australian Prudential Regulation Authority, and that operating costs have fallen.
Colley said the ATO figures were a positive endorsement for SMSFs at a time when regulators and the Government have expressed concerns about the sector.
"The ATO numbers show that the sector continues to perform and grow strongly in line with market expectations," Colley said.
"While SMSFs are not suitable for everyone, there is growing evidence that suggests there is increased understanding of how they are to be used correctly," he added.
"All the evidence suggests the right people are setting up SMSFs and, with the assistance of the appropriate professional specialists, are prudently managing their funds in a responsible way."
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