In 5 years to 2013 nearly 4 times money moved INTO SMSF than rolled out – showing continued strength in the sector.
According to Professional Planner –
“Rollovers into self-managed super funds (SMSFs) are still showing a drain of funds from the APRA-regulated funds in gross and net terms, says Graeme Colley, Director of Technical and Professional Standards of the SMSF Professionals’ Association of Australia (SPAA).
Colley says the latest figures from the Australian Taxation Office (ATO) conclusively show that over the five years up to 30 June 2013, $75.6 billion was rolled into SMSFs and only $19.9 billion was rolled out of SMSFs.
“On average, and on an annual basis, $15.1 billion rolled into SMSFs and $4 billion rolled out of SMSFs. These numbers hardly suggest an SMSF sector in decline or even treading water. Indeed, what they comprehensively show is that SMSFs retain their strong appeal.”
Colley says the data does not distinguish between amounts rolled between SMSFs and amounts rolled to or from non-SMSFs.”
And reporting by Krystine Lumanta, at selfmanagedsuper –
“Most amounts rolled in, 65 per cent, or rolled out, 60 per cent, involved SMSFs with assets of between $500,000 and $5 million,” he (Colley) said. The ATO figures also highlighted the importance of the benefit payments trend from SMSFs, confirming their role in providing retirement incomes and meeting the government policy objective of super providing income streams for Australians, he said.
“In the 2009 financial year, income streams amounted to 75.7 per cent of all benefit payments from SMSFs, of which transition-to-retirement income streams (TRIS) amounted to 9.1 per cent of total payments,” he said. “By the 2013 financial year, the proportion of income streams paid from SMSFs had increased to 93.2 per cent, of which 11.4 per cent were TRIS and just 6.8 per cent were lump sums, compared with 13.8 per cent of lump sums in the 2009 financial year.”
He added the 2013 financial year showed a deficit in the payment of benefits over all contributions made to SMSFs of just over $2.23 billion. “This was the first year in which employer, member and other contributions combined were less than the amount of benefit payments,” he said. “However, when net rollovers are added to contributions there remains an increase in net inflows to funds from both contributions and net rollovers of just over $10 billion.”
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