Mr Taxman
Change the way you feel about taxes.
Get informed and discover what the taxman doesn't want you to know.
Sharing it with Australia, Mr Taxman is a regular Woman’s Day columist and TV finance commentator
  • click to visit Mr Taxman on Twitter
  • click to visit Mr Taxman on FaceBook
  • rss

SMSFs reach magic million mark

May 07, 2014

The one millionth Australian has become a member of a self-managed superannuation fund according to Australian Taxation Office (ATO) statistics to be released later this month.

The ATO's self-managed super fund statistical report for the March 2014 quarter will show that the total number of members will have reached the million mark, increasing from the 995,878 members as at 31 December 2013.

Adrian Raftery, senior lecturer in Financial Planning & Superannuation at Deakin University says that the greater control and flexibility that they provide, coupled with perceived lower running costs, have made SMSFs an attractive option for Australians.

"A million people proves that SMSFs is a lot more than just a fad and that people do like the choice of what they can invest in, particularly if it is going to cost them half as much as leaving their money in a large APRA-regulated fund," said Dr Raftery.

Australian pensions policy developments since the early 1990s, such as the introduction of the compulsory employer contributions and favourable tax incentives, has facilitated a rapid increase in pension savings in Australia, making it the world's fourth biggest pension fund sector.

"Superannuation, with its mandated employer contributions and SMSF segment, is the one true financial experiment being conducted in Australia that the rest of the world is watching."

"The super industry is massive in Australia. It's size is already greater than the market capitalisation of the Australian equities market, the combined deposits of all Australian Banks and the annual Australian Gross Domestic Product and it is only going to get bigger," said Raftery.

Approaching $1.9 trillion, Raftery expects that it will be tempting for the Abbott Government to tax the superannuation honeypot in next week's Federal Budget.

"Increasing the taxation of superannuation is a ready-made, if somewhat unpopular, decision to funding any deficits."

"That said, I think they (the Federal Government) have already copped significant flak over the proposed deficit levy and I think any proposed tax increase for super will be delayed by a year or two," said Raftery.

This article first appeared in Professional Planner magazine here.

Tags: PensionsSMSFSuper

Author: Adrian Raftery

Comments

Post a New Comment

Media Availability

Are you interested in booking Mr Taxman for a speaking engagement or requesting his viewpoints for an article?

comments-rhsLatest Comments

  • "I’m Tia Bond from USA. I was able to get a loan from this firm owned by Mr. Daniel Silva after i read some vital info about their loan programs online then i decided to contact them and i was funded..."

    By: sweeney at Jun 20, 2018 11:43AM

    Post: The secret to getting your loan approved

  • "I’m Tia Bond from USA. I was able to get a loan from this firm owned by Mr. Daniel Silva after i read some vital info about their loan programs online then i decided to contact them and i was funded..."

    By: sweeney at Jun 20, 2018 11:40AM

    Post: The secret to getting your loan approved

  • " Today I'm so rich with the help of Mr Williams Programmed ATM Card i never believe this could really help me out when i saw Matthew given on his testimony on Facebook how he was helped with Mr..."

    By: Kristy at Jun 20, 2018 12:38AM

    Post: The Full Cost of Motoring in Australia

  • "Hello Everyone. DO YOU NEED A LOAN ? APPLY NOW IF YOU ARE INTERESTED! We offer the best loan, we offer Debt Consolidation Loan Up to 5 Million *Business setup Loan Up to 10 Million *Personal..."

    By: Anderson Scott at Jun 20, 2018 12:33AM

    Post: Foreign currency trading

  • "If you are going through hard times or poverty you must not be depressed,because this is a good chance for you to be rich and happy once more, kindly contact divinecardhacker@gmail.com to get your..."

    By: jose at Jun 19, 2018 3:38PM

    Post: The secret to getting your loan approved