Middle-to-higher incomes boosting SMSF growth
The SMSF sector experienced healthy growth over the March quarter, with men and women on middle-to-higher incomes driving an increase in new funds established, according to statistics released by the ATO.
.
The SMSF quarterly fund statistics for March 2024 showed there were 7371 new funds established for the quarter and 272 wind-ups for a total growth figure of 7099 funds, with the total number of SMSFs now at 616,400 with more than 1.14 million members.
Notably, the ATO figures showed for women earning a median income of up to $60,000, fund establishments declined by 1.4 per cent compared to the previous quarter.
In contrast, fund establishments for women earning between $60,000 and $200,000 increased by 1.5 per cent. This was a reversal from last year when more women with lower incomes were setting up SMSFs.
For men earning up to $60,000, the establishment of new SMSFs decreased by 0.3 per cent compared to the previous quarter. However, for men earning between $60,000 and $200,000, there was a 2.1 per cent increase in the creation of new funds.
The ATO figures also indicated a slight increase in the proportion of men establishing SMSFs, with 55.7 per cent of new funds set up by males, while 44.3 per cent were set up by women. This marks a 0.5 per cent decrease in the proportion of women creating SMSFs and a corresponding increase for men compared to the previous quarter.
Men and women aged from 35 to 44 constituted the largest demographic driving new fund establishments, responsible for 36 per cent of the new SMSFs, up almost 2 per cent on the December quarter.
The location where funds were set up remained largely consistent with figures from the December quarter, with a slight increase in fund establishments in New South Wales (0.7 per cent), Western Australia (0.7 per cent) and South Australia (0.2 per cent).
According to the data, the level of cryptocurrencies held by SMSFs ($1.044 billion) continued to fall, reaching its lowest level since the March quarter 2021, declining by more than 35 per cent from a high point in the June quarter 2021 ($1.613 billion).
However, allocations to listed shares rose by over $12 billion on the December quarter from $258 billion to $270 billion, while limited recourse borrowing arrangements also experienced an uptick of $1.4 billion over the same period, or 2.3 per cent, from $61 billion to $63 billion.
May 23, 2024
Todd Wills
smsmagazine.com.au
Todd Wills
smsmagazine.com.au
More Articles
From Bricks to iPhones: The Evolution of the Telephone
Check out the history of communication, eventually leading to the modern phones we use...
SMSF commercial property owners and Div 296 ‘misconceptions’
There are three misconceptions among business owners with SMSF commercial property, a finance expert...
LRBA stability has been understated
The stability of limited recourse borrowing arrangements (LRBA) within SMSFs has been understated, with their...
7 simple steps to get on the investment ladder
Entering the world of investing can be a life-changer for people of all ages. Here are seven simple steps for...
Carer responsibilities don’t meet interdependency criteria: PBR
A parent who was the sole carer for a terminally ill child is not considered to be in an interdependency...
Can I access my super early?
Many older Australians are understandably eager to access their superannuation, but strict rules...
Look for the red flags that signal unscrupulous advice
While the ATO is watching for signs of illegal early access to superannuation, SMSF trustees should also be on...
Magnificent Seven: More diverse than they may appear
The Magnificent Seven are more diverse businesses than their shared label suggests . The...
Heathmont Financial Services Pty Ltd (ABN 68 106 250 104) trading as Heathmont Financial Services is a Corporate Authorised Representative (No. 262098) of Knox Wealth Management Pty Ltd (ABN 74 630 256 227), Australian Financial Services Licence Number (AFSL) 513763.
Julian McGoldrick is an Authorised Representative (No. 262098) of Knox Wealth Management Pty Ltd AFSL 513763.