Super Concepts new funds triples
Super Concepts, a self managed superannuation funds (SMSF), recorded a 177% increase on new funds established in the financial year to June 30 2007.
The increasing trend among Australians establishing SMSFs propelled Super Concepts funds under administration to more than $2bn, a growth of 21% over the year.
According to Super Concepts, Australian’s interest in establishing a SMSF has continued after June 30th above its expectations.
In this record year, in which Super Concepts has nearly tripled its new funds established, has been fuelled by the Federal Government’s changes to superannuation laws and the allowance of after tax contributions of up to $1m before July 1, 2007.
But post-June 30, interest in SMSF is continuing as Australians recognise they can still make large deposits into their superannuation even if they missed out on the June 30 deadline.
Investors aged between 60 and 65 years can make $150,000 in non-deductible contributions per year, or $450,000 over three years. For a couple that brings them up to $900,000 – close to the $1m pre-July 1 figure.
The average size of Super Concepts’ pension fund was in excess of $1.3m with the average size of the accumulation fund $700,000.
Super Concepts had also seen an increase in interest from intermediaries wanting to partner with it and outsource the tax, compliance and auditing of SMSFs.
With the increased demand for SMSF services, intermediaries are realising the huge investment in time and resources required to build systems and processes that will satisfy the increased scrutiny by the ATO and provide cost effective solutions to clients.
There had also been an increase in client and adviser requests for utilising Super Concepts’ paperless SMSF platform to manage their fund.
Super Concepts is finding many clients both direct, and intermediaries do not want the hassle of paper work with their funds and its services are being sought after.
21-Aug-2007