Fall in SMSF fees allows real superannuation competition: SPAA
The Australian Taxation Office's (ATO) latest statistical report on self-managed super funds (SMSFs) prove SMSFs are competitive with other superannuation sectors in terms of fees, according to chief executive of the Self-Managed Super Fund Professionals' Association (SPAA), Andrea Slattery.
The ATO's SMSF statistical report for December 2011 showed falling average fees in the three years to 2010, from 0.95 per cent in 2008, to 0.67 per cent in 2009, to 0.65 per cent in 2010.
The report said per member fees for SMSFs are 40 per cent less than total fund fees and 38 per cent of SMSFs had fees less than 0.25 per cent per fund in 2010.
Slattery said looking at the trends it would be reasonable to expect fees to be even lower now.
She said the ATO report proved SMSFs were in good health, despite the continued fallout from the global financial crisis.
According to Slattery, the number of funds being established has increased on average over the past ten years, while SMSF membership numbers have nearly doubled over the past eight years, rising particularly among women.
"Although men still dominate the number of SMSFs starting for those over 54 years of age, women starting an SMSF with an income of less than $60,000 dominate, while men are larger in numbers who have incomes that are greater than $60,000," Slattery said.
AUTHOR
Staff Writer
Recommended for you
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.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
