Earlier this month, the ATO released data in a report titled ‘Self-managed super funds: A statistical overview 2022–23’ (Report).
The Report shows that SMSFs continue to grow and there are many interesting statistics that can be seen. We outline some here.
SMSF key numbers
As at 30 June 2024:
- There were over 625,000 SMSFs, an increase of 4.5% from 30 June 2023.
- 32,700 SMSFs entered the sector over the year, an increase of 21% from 2022-23.
- There were over 1.15 million members of SMSFs.
- SMSFs collectively held $990.4 billion in total assets, an increase of $69.2 billion, or 7.5% from 30 June 2023.
- SMSF’s made up 25% of all super assets, which is the same proportion as at 30 June 2023.
In the five years to 30 June 2024:
- The number of SMSFs increased by 11%, an average of 2.2% per year.
- On average 27,000 funds entered the sector annually, and over 2,000 per month.
- Total assets held by SMSFs increased by $275.8 billion, or 39%.
The Report shows an estimated return of 10.1% for SMSFs, up from 0.6% for the 2021-22 year.
The trend of corporate trustees has continued with 70% of SMSFs now having corporate trustees as at 30 June 2024, up from 68% the year before.
There was an increase in SMSF benefit payments in 2022-23 with $43.8 billion in benefits paid from SMSFs. This is up $7.3 billion from 2021-22.
While males continue to have higher balances than females across all age groups, the trend of female average member balances increasing faster than male balances has continued. Female member balances increased by 26% while male average member balances increased by 22%.
The tendency for female average member contributions being higher than males has continued, as has the tendency for male average employer contributions being higher than females.
Contraventions
The Report highlights the number and types of contraventions reported to the ATO via auditor contravention reports (ACRs) since the start of this reporting in 2004. The key points are:
- The number of ACRs reported by approved SMSF auditors in 2022-23 was 2.7% of the total number of lodging SMSFs.
- In 2022–23, ACRs were lodged for 15,200 SMSFs, reporting 41,200 contraventions. Just under half (46%) of all contraventions were reported as rectified.
- The most commonly reported contraventions in 2022-23 continued to be loans or financial assistance to members (19%), while in-house assets and separation of assets constituted 16% and 13% respectively.
Investments
The Report gives insight into the types of assets and investments of SMSFs. The key points are:
- 74% of all SMSF assets are held in one of the five investment classes, Australian listed shares (27.5%), cash and term deposits (17.5%), unlisted trusts (12.4%), non-residential real property (10%) and LRBA assets (6.5%).
- 4% of SMSFs held total borrowings of $23.0 billion and equating to 2.5% of the total value of SMSF assets.
- 86% of SMSFs reporting an LRBA held one property, 8.8% held two properties and 1.8% held three or more. The remainder (3.6%) reported holding no properties (presumably this accounts for equities held under an LRBA).
- Total SMSF investment in real property, both directly and through LRBAs, has grown to $200.5 billion in 2022-23, up from $196.1 billion in 2021-22 and $152.6 billion in 2018-19.
- Total SMSF investment in residential real property, both directly and through LRBAs, was $83.1 billion in 2022-23, representing 0.8% of the total Australian residential property market.
- Direct investment in non-residential real property grew by 35% from $68.4 billion in 2018-19 to $92.5 billion in 2022-23. Investment in 2021-22 was $88.9 billion.
- The Report shows an estimated return of 10.1% for SMSFs, up from 0.6% for the 2021-22 year.
Conclusion
The Report provides insights into the SMSF industry and shows a continuation of the strong growth experienced in recent years.
For the full data, see https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/in-detail/statistics/annual-reports/self-managed-super-funds-a-statistical-overview-2022-23.
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This article is for general information only and should not be relied upon without first seeking advice from an appropriately qualified professional. The above does not constitute financial product advice. Financial product advice can only be obtained from a licenced financial adviser under the Corporations Act 2001 (Cth).
Note: DBA Lawyers presents monthly online SMSF training. For more details or to register, visit www.dbanetwork.com.au or call 03 9092 9400.
For more information regarding how DBA Lawyers can assist in your SMSF practice, visit www.dbalawyers.com.au.
By Shaun Backhaus ([email protected]) Director, DBA Lawyers
DBA LAWYERS
26 February 2025
