Self-managed superannuation funds (SMSFs) have received a boost from the Minister for Superannuation, Financial Services and the Digital Economy, Senator Jane Hume who has pointed to Australian Taxation Office (ATO) data as suggesting more Australians want to become ‘masters of their own destiny’.
More than 5,000 new SMSFs were established in the December 2020 quarter.
Hume’s support for the SMSF sector sits in contrast to its approach to the Australian Prudential Regulation Authority (APRA)-regulated sector which has been subject to controversial elements of its Your Future, You Super legislation.
Hume said the December 2020 SMSF quarterly statistical report showed there had been significant growth across the sector, despite the economic impacts and financial uncertainty caused by COVID-19.
The report showed that there were approximately 594,000 SMSFs and an estimated 1.1 million members with the figures pointing to overall growth in total fund numbers which had increased on average by 2% each year over the last five years.
Total estimated SMSF assets also increased 5.1% over the quarter from $727.1 billion in the September 2020 quarter to $764.2 billion in the December 2020 quarter.
“The quarterly report shows increased consumer engagement and the growing desire for Australians to become ‘masters of their own destiny’ by taking their retirement savings into their own hands,” Hume said int a specifically released statement.
“The SMSF sector always plays a significant role in the superannuation landscape, with steady growth trends signaling its increasing prominence. Already, SMSF’s make up 99% of all superannuation funds and hold approximately 26% of all superannuation assets,” Hume said.