Size of the SMSF sector
At 30 June 2021:
- there were almost 598,000 SMSFs, an increase of 4% on the previous year, and an increase of 6% over the five years from 2016–17.
- there were almost 1.115 million members of SMSFs.
- SMSFs collectively held $822 billion (25%) of the $3.3 trillion in super assets under managementFootnote1.
Graph 1: Total super assets by fund type at 30 June 2016, 30 June 2020, and 30 June 2021
See table 1 and table 2 of the Data tables (XLXS 611KB)This link will download a file.
Establishments and wind-ups
In the five years to 2020–21, the number of SMSFs grew by an annual average of 1.7%, with an average of 25,000 new funds established annually (around 2,100 per month).
30,000 SMSFs were established in 2016–17, dropping to 20,000 in 2018-19, then growing to 25,000 in 2020–21.
Our most recent lodgment data for 2019–20 shows that:
- average SMSF assets on establishment were $391,000, up 5% from $372,000 in 2015–16 and down 4% from $407,000 in 2018–19
- median SMSF assets on establishment were $260,000, up 12% from $232,000 in 2015–16, and down 3% from $269,000 in 2018–19
- more than half (62%) of SMSFs had been established for more than 10 years, while 11% had been established for three years or less.
Approximately 15,900 SMSFs wound up in 2019-–20, compared to an annual average of 17,300 for the five years to 2019–20. Of the SMSFs that wound up in 2019–20:
- the average assets held in the year before wind-up was $487,000, up from $318,000 for funds that wound up in 2015–16, and $443,000 for funds that wound up in 2018–19
- the median assets held in the year before wind-up was $293,000, up from $161,000 for funds that wound up in 2015–16 and $255,000 for funds that wound up in 2018–19
- 39% reported assets of $200,000 or less in the year before their wind-up, down from 55% of funds that wound up in 2015–16, and 42% of funds that wound up in 2018–19
- 59% were in accumulation phase and 41% were in retirement phase
- the average period from establishment to wind-up was 11.5 years.
See table 1, table 3, table 4, table 6 and table 7 of the Data tables (XLXS 611KB)This link will download a file.
Growth of SMSF assets
At 30 June 2021, SMSF assets totalled $822.0 billion.Footnote2 This represents an increase of $224.3 billion, or 38%, in the five years to 30 June 2021.
In the 12 months from the 2020 to the 2021 financial year, SMSF assets grew by $80.1 billion, or 11%.
At 30 June 2020:
- SMSFs had assets of over $1.3 million on average, the same as the previous year and up 20% from 2015–16
- the median SMSF asset size was $734,000, up 2% from the previous year and 23% from 2015–16.
See table 2 and table 5 of the Data tables (XLXS 611KB)This link will download a file.
Contributions, rollovers and benefit payments
Contributions
- Total contributions to SMSFs were $17.9 billion in 2019–20, a 4% increase from $17.2 billion in 2018–19, and a 41% decrease from $30.5 billion in 2015–16.
- Member contributions rose by 7% to $12.6 billion from $11.8 billion in 2018–19.
- Employer contributions dropped by 2% to $5.4 billion from $5.5 billion in 2018–19.
- The level of contributions is well below what it was in 2015–16 when member contributions were $23.5 billion and total contributions were $30.5 billion. This is largely attributed to the lowering of the contribution caps from the 2017–18 year.
- Average member contributions increased to $54,000 from $51,000 in 2018–19. Median member contributions rose from $19,000 to $20,000 over the same period.
- Average employer contributions remained the same at $19,000 in 2018–19 and 2019–20. Median employer contributions also remained constant at $16,000 over the same period.
Graph 2: Split of contributions to SMSFs by type and total, 2015–16 to 2019–20
In 2019–20, total contributions to SMSFs accounted for 13% of all super contributions made in the superannuation sectorFootnote3, with:
- member contributions to SMSFs accounting for 34% of member contributions to all super accounts
- employer contributions to SMSFs accounting for 5% of employer contributions to all super accounts.
A new label for proceeds from primary residence disposal was introduced to the 2018–19 SMSF annual return to capture data on trustees utilising the Downsizer measure. These contributions are included with member contributions.
- In 2018–19, 1,709 members of SMSFs reported a total of $439 million at this label. The average contribution per member was $257,000 and the median was $300,000.
- In 2019–20, 2,344 members reported a total of $596 million at the proceeds from primary residence disposal label. The average contribution per member as $254,000 and the median was $300,000.
Graph 3: Contributions to SMSFs as a proportion of the superannuation sector by type and total, 2015–16 to 2019–20
Rollovers
Rollovers reported in 2019–20 include:
- $12.5 billion rolled into SMSFs, up 1% from 2018–19 and down 14% from 2015–16
- $8.6 billion rolled out of SMSFs, down 6% from 2018–19, and up 62% from 2015–16.
Benefit payments
Benefit payments include lump sum, income stream, transition to retirement and combination of payments.
Total SMSF benefit payments were $32.4 billion in 2019–20, a drop of 5% from $34.3 billion in 2018–19, and from $34.0 billion in 2015–16.
In 2019–20:
- The average benefit payment per SMSF was $105,000, a 12% drop from 2018–19 and an 11% decrease from 2015–16.
- The median benefit payment per SMSF was $55,000, a 21% decrease from 2018–19 and a 12% decrease from 2015–16.
- The number of SMSF members receiving a benefit payment dropped by 8% from 2018–19 and by 11% from 2015–16.
- 62% of total benefit payments by SMSFs were in the form of an income stream, including transition to retirement income streams.
- Transition to retirement income streams made up 2.5% of total benefit payments, down from 3.3% in the previous year and 11.9% in 2015–16.
Over the five years to 30 June 2020, there was an overall net outflow of funds from SMSFs of $64.2 billion. This was mainly due to significantly higher benefit payments against contributions from the 2017–18 year onwards.
Graph 4: Benefit payments from SMSFs by type and total, 2015–16 to 2019–20
See table 8, table 9, table 10 and table 11 of the Data tables (XLXS 611KB)This link will download a file.
SMSFs by payment phase
In 2019–20:
- 55.1% of SMSFs were wholly in accumulation phase, down from 57.9% in 2018–19, and 56.3% in 2015–16
- 35.3% were wholly in retirement phase, up from 32.8% in 2018–19 and 32.7% in 2015–16
- the remaining 9.6% of SMSFs were in partial accumulation and retirement phase, up from 9.3% in 2018–19, and down from 11% in 2015–16
- 45% of SMSFs made retirement benefit payments to at least one member in 2019–20, up from 42% in 2018–19, and 44% in 2015–16
- of the SMSFs that started to make retirement benefit payments, 67% of the funds were more than five years old and 9% were less than two years old.
See table 12 and table 13 of the Data tables (XLXS 611KB)This link will download a file.
SMSF structure
At 30 June 2021, 65% of all SMSFs had a corporate trustee.Footnote4 This is compared to new registrations during the 2020–21 year when 85% of SMSFs were established with a corporate trustee.
SMSFs with two members continue to be the dominant structure, accounting for 69% of SMSFs at 30 June 2020. SMSFs with a single member made up 24% of funds. Those with three members make up 3% of SMSFs and those with four member SMSFs making up 4%.Footnote5
From 1 July 2021, SMSFs have been permitted to register 6 members. Data regarding this change is not yet available and will be published in future SMSF statistical publications.
See table 14 of the Data tables (XLXS 611KB)This link will download a file.
Service providers
In 2019-20:
- SMSFs used the services of around 4,600 SMSF auditors and 13,800 tax agents
- 47% of SMSF auditors performed five to 50 SMSF audits, and 27% of SMSF auditors performed 51 to 250 audits.
- 7% of SMSF auditors conducted more than 250 audits, representing 59% of total SMSF audits
- the average audit fee was $660, and the median audit fee was $550
- 99% of SMSFs used a tax agent to lodge their 2019–20 SMSF annual return. For these agents, the average number of SMSF clients was 31 and the median was 9.
See table 15, table 16 and table 17 of the Data tables (XLXS 611KB)This link will download a file.
Auditor Contravention Reports
The number of auditor contravention reports (ACRs) reported by approved SMSF auditors was 2.6% of the total number of lodging SMSFsFootnote6:
- In 2020–21, ACRs were lodged for 13,900 SMSFs, reporting 40,200 contraventions. Just under half (45%) of all contraventions were reported as rectified.
- The most commonly reported contraventions continued to be loans or financial assistance to members (20%), while in-house assets and separation of assets constituted 17% and 13% respectively.
See table 18 of the Data tables (XLXS 611KB)This link will download a file.
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