Tax Talks

Update 31 | Class SMSF Benchmark Report August 2022

The new Class SMSF Benchmark Report August 2022 is out.

Class SMSF Benchmark Report August 2022

This latest report was published in August 2022 and covers developments up until 31 March 2022. The June numbers are not out yet. In this episode, Kevin Zhang, Technical Compliance Manager of Class, will walk you through the main findings of this report. Here is what we learned but please listen in as Kevin explains all this much better than we ever could.

To listen while you drive, walk or work, just access the episode through a free podcast app on your mobile phone.

Class SMSF Benchmark Report August 2022

Here are the main statistics, but for more details please listen to the interview above and also contact Class to receive the actual benchmark report.

The sector is still growing – big time. The number of SMSFs grew by 4.7% to 605,000. As of 31 March 2022, these 605,000 SMSFs held a total asset value of $892 billion. That is 26% of the AUD 1.4 trillion super sector in Australia.

SMSFs received AUD 59 billion in contributions, which is a 501% increase, mainly due to an increase in personal contributions (60% more) and fewer lump sum payments (38% fewer attributable to the removal of COVID early access).

The average age at establishment has fallen from 51 years between 2006 and 2014 to 46 years between 2020 and 2022. The 35-44 age group (comprising 30% of the total) is the most popular in which to establish an SMSF.

15% more females than males are making downsizer contributions. And female balances have also grown faster than male balances since 2017, outperforming them by 4%, and have risen from 80% to 84% of male balances.

Meanwhile, downsizer contributions are at a record high with a 6% increase in contributions made by members since FY19. This is largely attributed to homeowners, specifically retirees, selling their large properties to free up equity. The average downsizer contribution has increased by $15,000 since the last financial year.

And there were also significant law changes. Think of the change to up to six members, changes to the work test and downsizer contributions.

Key Statistics from Class

So this is a short overview of just a few statistics we discuss in this update. There is a lot more to learn in the interview and even more in the actual Class Benchmark Report. Please reach out to Class for a free copy.

 

MORE

LRBA Timing

SMSF Trustee Discretion

Property Development within an SMSF

 

Disclaimer: Tax Talks does not provide financial or tax advice. All information on Tax Talks is of a general nature only and might no longer be up to date or correct. You should seek professional accredited tax and financial advice when considering whether the information is suitable to your or your client’s circumstances.