POWERED BY MOMENTUM MEDIA
Super changes give SMSF trustees jitters
Changes to superannuation proposed in the 2016 Federal Budget appears to have shaken confidence in the self-managed superannuation sector, which recorded the lowest level of contributions for a June quarter since 2012, according to a survey.
AMP SMSF business, SuperConcepts, released the SMSF Investment Pattern Survey, which showed average contributions to an SMSF declined by 38 per cent from the June quarter in 2015 to the June quarter in 2016.
SuperConcepts executive manager, technical and strategic solutions, Phil La Greca, said the lowest contribution levels were despite higher concessional caps compared to last year and the superannuation guarantee levels at 9.5 per cent instead of nine per cent.
"There's obviously the uncertainty of these measures that's had a major impact on that," he said.
"We are still in a position where funds are now paying more out than they are seeing contributions. That's pretty much to be expected because of the ageing demographic.
"We have more people in pension drawing more than contributions flowing in so the growth of the sector, shall we say, has been driven more by more by investment performance in terms of dollars as distinct from the number of funds," La Greca said.
La Greca said average contributions to SMSFs dipped over the financial year, particularly in December, March and June quarters, compared to previous corresponding years.
Contributions slid from $17,320 in the June quarter 2015 to $10,748 in June quarter 2016.
While many SMSF trustees attained some form of advice through a planner or an accountant, there were a large number of trustees who were possible out on their own.
"That's part of the big issue. Do they actually understand what the changes are, do they understand the consequences?" La Greca asked.
Recommended for you
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
ASIC has sentenced former director Mudasir Mohammed Naseeruddin over four years imprisonment for ‘egregious conduct’ and dishonestly obtaining client funds from six investors’ SMSF accounts.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
62.62 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
33.20 3 y p.a(%)
4
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.95 3 y p.a(%)
5
CFS FC Acadian Global Equity Long Short
32.82 3 y p.a(%)
Add new comment