The SMSF Powerhouse

Posted by Daniel Joseph

We’ve called Australia’s shift to SMSFs a revolution – and for good reason. It is currently the defining topic of the financial industry and hundreds of Australians a day are taking control of their future by setting up an SMSF.

Now it seems that by the time an exciting new statistic is published about their growth, it is already superseded by a new, more impressive one. In 2010 the average number of Australians flocking to SMSFs was 92 per day. By 2012 this had DOUBLED to 184. While this seemed impressive, the most recent figures from the ATO make this seem meagre.?More than 1,000 applications a week are expected to be lodged in May and June this year, with the office receiving a record 500 applications in one day last week.?While 68 of these were rejected, the numbers still speak for themselves: 30,000 funds were established last year, and expectations are that this will rise by at least 8 per cent this year!

The total number of funds will hit 500,000 shortly, with over a million trustees and half a BILLION in assets anticipated by mid 2013.

The ATO is, however, very prudent when it comes to SMSFs, highlighting the need for professional assistance in their set up. They shut down 10,000 funds for ‘inactivity’ (e.g. not lodging their annual returns) last year alone, and are hawkishly watching for members taking out ‘loans’ from their superannuation funds, the penalties for which are severe.

Blue Wealth is now working with the NAB on an integrated SMSF property solution. Anecdotal evidence suggests that 60% of their investment loans in the past 12 months has been to SMSFs. The NAB recognises the importance of a solution in this rapidly expanding financial space, and the importance of a superior property provider.

This move from one of the big four hammers home the mantra: remember, if you’re not talking to your clients about super, then someone else is.

Posted by Daniel Joseph, on 11th Apr 2013