BCS Direction News
The ATO publish regular statistical reports for the self managed super fund (SMSFs) market.
The following table consists of details of the number of SMSFs that were established and wound up during each financial year:
| JUNE-06 | JUNE-07 | JUNE-08 | JUNE-09 | |
| Establishments | 24,191 | 44,584 | 32,498 | 28,995 |
| Wind Ups | 4,923 | 3,862 | 4,558 | 2,310 |
| Total number of SMSFs | 314,971 | 355,693 | 383,633 | 410,318 |
| Total members of SMSFs | 604,333 | 680,154 | 721,469 | 772,299 |
This table contains estimates of the amount of assets held by SMSFs for each type of asset listed on the SMSF income tax and regulatory return for the financial years ended 30 June 04 - 07:
| JUNE-04 | JUNE-05 | JUNE-06 | JUNE-07 | |
| Life Insurance Policies ($m) | 344 | 293 | 279 | 274 |
| Other Managed Investments ($m) | 7,882 | 10,100 | 13,717 | 19,932 |
| Overseas Assets ($m) | 853 | 1,067 | 1,525 | 2,303 |
| Real Property ($m) | 15,481 | 18,797 | 22,649 | 35,197 |
| Other Property ($m) | 630 | 741 | 842 | 1,005 |
| Listed Shares & Equities ($m) | 41,048 | 53,566 | 70,811 | 112,043 |
| Unlisted Shares & Equities ($m) | 2,045 | 2,888 | 3,634 | 5,040 |
| Public Trustss ($m) | 13,981 | 18,029 | 23,499 | 33,752 |
| Other Trusts ($m) | 13,947 | 16,789 | 19,655 | 24,243 |
| Cash, Debt Securities & Term Deposits ($m) | 30,452 | 37,319 | 46,024 | 82,167 |
| Loans ($m) | 1,245 | 1,387 | 1,483 | 1,744 |
| Other ($m) | 3,258 | 4,450 | 5,813 | 8,713 |
| Total Direct Assets ($m) | 123,301 | 155,032 | 195,934 | 306,207 |
| TOTAL ASSETS ($m) | 131,526 | 165,452 | 209,930 | 326,413 |
The following estimates relate to the amount of assets held by the SMSFs for each type of investment listed in the SMSF annual return for June 2008 and preceeding quarters. This is a very interesting table due the recent global economic financial crisis.
| JUNE-08 | SEPT-08 | DEC-08 | MAR-09 | JUN-09 | |
| Listed Trusts ($m) | 25,392 | 24,263 | 22,453 | 22,677 | 25,118 |
| Unlisted Trusts ($m) | 28,709 | 27,432 | 25,385 | 25,639 | 28,399 |
| Insurance POlicy ($m) | 245 | 248 | 252 | 258 | 264 |
| Other Managed Investments ($m) | 19,211 | 18,701 | 16,979 | 16,890 | 17,288 |
| Cash and Term Deposits ($m) | 87,065 | 89,737 | 92,576 | 96,071 | 100,159 |
| Debt Securities ($m) | 2,179 | 2,246 | 2,317 | 2,404 | 2,506 |
| Loans ($m) | 1,947 | 1,998 | 2,026 | 2,070 | 2,129 |
| Listed Shares ($m) | 106,883 | 97,256 | 81,145 | 81,243 | 92,327 |
| Unlisted Shares ($m) | 3,664 | 3,759 | 3,811 | 3,896 | 4,006 |
| Derivatives and Instalment Warrants ($m) | 395 | 408 | 421 | 436 | 455 |
| Non-residential Real Property ($m) | 30,510 | 30,545 | 31,047 | 31,630 | 34,125 |
| Residential Real Property ($m) | 10,758 | 11,036 | 11,189 | 11,437 | 11,762 |
| Artwork, Collectibles, metal or Jewels | 397 | 407 | 413 | 422 | 434 |
| Other Assets ($m) | 10,035 | 10,295 | 10,438 | 10,669 | 10,972 |
| Overseas Shares ($m) | 763 | 694 | 579 | 580 | 659 |
| Overseas Non-residential Real Property ($m) | 47 | 43 | 36 | 36 | 41 |
| Overseas Residential Real Property ($m) | 85 | 77 | 64 | 64 | 73 |
| Overseas Managed Investments ($m) | 294 | 267 | 223 | 223 | 254 |
| Other Overseas Assets ($m) | 1,522 | 1,385 | 1,155 | 1,157 | 1,314 |
| TOTAL AUSTRALIAN AND OVERSEAS ASSETS ($m) | 330,100 | 320,797 | 302,508 | 307,803 | 332,286 |
Further statistical data can be found at:
Self-managed super fund statistical report - June 2009
Please contact us to arrange a no obligation meeting and let us show you why you need to outsource to BCS – the super audit specialists.
1. In a recent Taxpayer Alert [2009/8], the Tax Office has warned against arrangements currently being promoted whereby the promoter advertises the sale of a pre 1999 SMSF which has control of a related unit trust.
2. The promoters of these arrangements claim that any investments made by the SMSF into the related trust prior to the end of the transitional period of 30 June 2009 will not be included as in-house assets.
3. In-house assets are limited to a maximum of 5% of the market value of the fund's assets. The law was amended in 1999 to extend the definition of in-house assets to include an investment in a related trust, subject to transitional provisions.
4. The Tax Office has advised that the transitional provisions only apply in specific circumstances and hence the arrangements being promoted may not satisfy the transitional rules.
5. Trustees of SMSF's that are in fact subject to the transitional rules are urged to review the fund's investments and ensure that their SMSF's will remain compliant after the transitional period ends on 30 June 2009.
6. Taxpayers who are willing to provide information about people or companies who may be promoting such arrangements should call the tax practitioner integrity service on 1800 639 745.
7. Click here to access the detailed Taxpayer Alert or visit the ATO website at http://www.ato.gov.au.
Are you? - A trustee or member of a Superannuation Fund?
At a glance: - The Government recently announced the details of its review into Australia's superannuation system.
You should: - Be aware of the Governments review of the superannuation system.
1. In a recent media release, Minister for Superannuation and Corporate Law, Senator Nick Sherry, provided more details in relation to the upcoming review into the superannuation system in Australia.
2. Senator Sherry announced the terms of reference as well as the expert panel for the review of the superannuation system.
3. The Terms of reference for the review include examining and analysing Australia's superannuation system in light of the following four threshold areas:
- Governance;
- Efficiency;
- Structure; and
- Operation
4. The review will commence early in the 2009/10 financial year and will report to the Government by June 30, 2010.
5. Click here for a copy of the media release or visit the Treasurer's website at www.treasurer.gov.au
... There Is No Need To Take The Risk
In a speech given by Ian Read, Assistant Deputy Commissioner of Taxation at the Annual Australian Taxpayers Conference, Self-managed Superannuation compliance was the main focus.
He stated that this year the ATO plan to undertake "900 audits and reviews of individual approved auditors of self managed funds". The criteria they use to select auditors for review, are as follows:
• accountants of superfunds whose tax agent and audit firm are one of the same;
• audits performed where there appears to be a lack of independence;
• a small number of funds audited by a single auditor;
• no auditor contravention reports lodged where a large number of funds have been audited by a single auditor; or
• funds with an unqualified audit report where one or more contraventions have been identified.
Why risk:
• An ATO audit of your practice and SMSF's
• The possibility of any litigation or any conflict of independence by auditing your own SMSF's.
Let us also solve your independence issues, and minimise your risk by trying this outsourcing service.
We welcome you to contact us without any obligation and see for yourself how BCS Direction can offer such a professional and cost efficient service.
