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Segment highlights
Segment highlights for our analysis and statistics.
Last updated 13 May 2019
Size of SMSF sector
SMSFs accounted for 99.6% of the total number of superannuation funds in Australia and 28% of the $2.7 trillion in total superannuation assets at 30 June 2018.Footnote1
There were 596,000 SMSFs holding $750 billion in assets, with more than 1.1 million SMSF members at 30 June 2018.Footnote2
Over the five years to 30 June 2018, the number of SMSFs grew by around 3.5% annually on average.
Over the five years to 30 June 2018, an average of 31,000 new SMSFs were established each year and 12,000 were wound up.
At 30 June 2018, more than half (55%) of SMSFs had been established for more than 10 years, while 14% had been established for three years or less.
Growth of SMSF assets
At 30 June 2017, SMSFs had assets of just over $1.2 million on average, an increase of 10% over the previous year and 27% over the previous five years.
Average assets per member grew to $652,000 at 30 June 2017, an increase of 11% over 2016 and 29% over the previous five years.
SMSFs established in 2016–17 had average assets of $521,000, an increase of 38% from $379,000 for SMSFs established in 2015–16 and 54% from $338,000 for those established in 2012–13.
48% of SMSFs held assets of between $200,001 and $1 million at 30 June 2017, with these SMSFs accounting for 21% of total SMSF assets.
32% of SMSFs held assets greater than $1 million to $5 million at 30 June 2017. These SMSFs accounted for 53% of total SMSF assets.
Only 0.7% of SMSFs had assets greater than $10 million at 30 June 2017. However, these funds held 10% of total SMSF assets.
Contributions
In 2016–17, total contributions to SMSFs were $41.8 billion, an increase of 32% over 2016 and 79% over the previous five years. Contributions to SMSFs accounted for 26% of all superannuation contributionsFootnote3.
In 2016–17, member contributions to SMSFs grew to $34.7 billion, an increase of 42% over the previous year and 94% over the five years.
In 2016–17, employer contributions to SMSFs totalled $7.1 billion, remaining at the same level as 2016 but an increase of 31% over the previous five years.
SMSF benefit payments
Benefit payments increased from $25.5 billion in 2012–13 to $46 billion in 2016–17. The number of SMSF members receiving a benefit payment increased by 11% over the previous five years.
In 2016–17, the average benefit payment was $145,000, and the median payment was $67,000. The average benefit payment increased from $105,000 in 2012–13, an increase of 35% over the five years. The median benefit payment increased from $52,000 in 2012-13, an increase of 30% over the five years.
In 2016–17, 87% of all benefit payments were in the form of an income stream (including transition to retirement income streams). The remaining 13% of benefit payments were in the form of lump sums.
Transition to retirement income streams made up 8% of total benefit payments in 2016–17, decreasing from 12% in the previous year.
SMSFs by payment phase
58% of SMSFs were solely in the accumulation phase in 2016–17 an increase of 2% from 2015-16 and 32% were wholly in pension phase a drop of 2% from 2015–16. The balance of 11% were in partial accumulation and pension phase, remaining at the same level as in 2015–16.Footnote4
43% of SMSFs made pension payments to at least one member in 2016–17 compared with 45% in 2015-16.
Of SMSFs that started to make pension payments in 2016–17, 53% were more than five years old, while 19% were less than two years old.
Of funds established over the 10 years to 30 June 2017, 74% had not started making pension payments.
SMSF trustee structure
At 30 June 2018, 59% of all SMSFs had a corporate trustee.Footnote5
81% of newly registered SMSFs in the three years to 30 June 2018 were established with a corporate trustee.
Service providers
In 2016–17, SMSFs used the services of around 5,600 SMSF auditors and 13,600 tax agents.
52% of SMSF auditors performed between five and 50 SMSF audits, while 28% of SMSF auditors performed between 51 and 250 audits.
5% of SMSF auditors conducted more than 250 audits, representing 49% of total SMSF audits in 2016–17.
99% of SMSFs used a tax agent to lodge their 2016–17 SMSF annual return.
SMSF member demographics
At 30 June 2018 there were 1.1 million SMSF members, of whom 53% were male and 47% female.Footnote6
The median age of SMSF members of newly established funds in 2016–17 was 48 years.
At 30 June 2018, the median age for all SMSF members was 59 years.
In 2016–17, 42% of members were in pension phase, compared to 40% in 2015-16.
SMSF member balances
At 30 June 2017, the average SMSF member balance was $652,000 and the median balance was $393,000, an increase of 29% and 33% respectively over the previous five years.
The average member balances for female and male members at 30 June 2017 were $603,000 and $736,000 respectively. The female average member balance increased by 32% over the previous five years, while the male average member balance increased by 25%.
Over the five years to 30 June 2017, the proportion of SMSF members with balances of $200,000 or less fell from 43% to 35%.
At 30 June 2017, 42% of SMSF members had balances between $200,001 and $1 million.
At 30 June 2017, 1% of SMSF members had balances of over $5 million.
Investment performance
In 2016–17, the average return on assets for SMSFs was 10.2%, a significant increase from the 3.1% return in 2015–16. This is consistent with the positive 9.1% investment performance by APRA funds and the trend of positive returns over the five years to 2016–17.Footnote7
SMSF expenses
The average total expense ratio of SMSFs in 2016–17 was 1.17% and the average total expenses value was $13,900.
The average ‘investment expense’ and ‘administration and operating expense’ ratios in 2016–17 were 0.66% and 0.51% respectively.
SMSFs in pension phase incurred higher average total expenses than funds solely in accumulation phase.
Generally, the average expense ratio for SMSFs declines as fund size increases.
SMSF asset allocation
SMSFs held 80% of their assets in direct investments at 30 June 2017, compared with 20% in indirect investments such as managed investments and trusts.
The top five SMSF investments were cash and term deposits, Australian-listed shares, unlisted trusts, non-residential real property and limited recourse borrowing arrangement (LRBA) assets, accounting for 79% of all SMSF assets at 30 June 2017.
As total SMSF assets increased, the proportion of assets held in cash and term deposits and 'other assets' fell significantly while the proportion of assets held in trusts, other managed investments and non-residential property increased.
At 30 June 2017, 9% of SMSFs reported LRBA assets, increasing from 7% in the previous year and from 3% in 2012–13.
93% or $34.8 billion of the $37.2 billion held under LRBAs is in residential and non-residential real property.
SMSF borrowings
At 30 June 2017, 10% of SMSFs held total borrowings of $20.8 billion, representing 3% of total SMSF assets.
89% of the total value of borrowings reported by SMSFs was for LRBA assets.
The average amount of total borrowings fell from $379,000 at 30 June 2016 to $368,000 at 30 June 2017.
SMSF members by gender
Male SMSF members held 58% of total assets compared with 42% for females at 30 June 2017.
In the five years to 30 June 2017, average SMSF member balances for females grew faster than for males (32% compared to 25%).
Average contributions for female SMSF members also grew at a faster rate than for males in the five years to 30 June 2017. Member contributions grew by 80% for females compared to 71% for males, and employer contributions increased by 25% for females compared to 23% for males. This was largely driven by a spike in 2016–17.
