The average taxable income of all SMSF members in the year ended 30 June 2014 was $109,000, while the median taxable income was $57,000.22Members aged 35-49 years had the highest average taxable income of $132,000, while members under 35 years had the lowest average taxable income of $76,000 (see appendix 1, table 11).
Graph 7 shows older members had higher average balances and lower average taxable incomes. The average SMSF member balance ranged from $67,000 for members under 35 years to $937,000 for those over 65 years. This represents a growth over the five years to 2014 of 24% and 22% respectively.23
The 50-59 year age group had the largest proportion of members, with an average balance of $472,000. Analysis shows that as the proportion of SMSF members aged 60 years or older increased during the five-year period, so did their average balance.
Graph 7: 2014 Average and median taxable income and balance of SMSF members, by age
Graph 8 shows the average and median taxable incomes for SMSF members and non-SMSF members across age ranges. SMSF members across all age ranges had higher average and median taxable incomes. The most significant difference in average taxable income was for members aged 35-49 years and 50-59 years. On average, SMSF members in each of these groups earned $131,000, compared to non-SMSF members, who earned $69,000 (see appendix 1, table 11).
From 2010 to 2014, SMSF members of all ages had higher average taxable incomes than non-SMSF members (which averaged $58,000 in 2014).
Graph 8: 2014 Average and median taxable income of SMSF members and non-SMSF members by age range
23 Based on 2010 to 2014 SAR lodged data.