Lower balances no impediment to SMSF establishment
Most accountants and financial advisers would be prepared to establish a self-managed superannuation fund (SMSF) with as little as $100,000 to $200,000, according to a survey conducted by Money Management.
The survey, sponsored by Australian Unity Personal Financial Services and conducted during the recent SMSF Association national conference in Melbourne, suggests planners and accountants giving advice in the SMSF sector do not necessarily adhere to the convention that the minimum account balance should be closer to $300,000 to justify establishment of an SMSF.
Indeed the sentiment of those undertaking the survey seemed to be that establishment of an SMSF should be based as much on strategy as on fund balances.
Asked what they regarded as being the minimum funds under management necessary to establish an SMSF, 51 per cent of respondents cited $100,000 and $200,000, with 21.4 per cent citing the lower figure.
This compared to 14.2 per cent who cited $300,000, 14.2 per cent who cited $400,000 and the just 10 per cent who cited $500,000.
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.
