Contributions to SMSFs
Over the five-year period to 30 June 2013, contributions to SMSFs averaged $24.9 billion a year (member $17.1 billion, employer $7.4 billion, other $0.4 billion ) on behalf of 62% of SMSF members (see appendix 1, table 3).
In 2013, member contributions into SMSFs increased to 76% of all SMSF contributions, compared to 70% or less from 2009 to 2012. This coincides with a 5% drop in the proportion of employer contributions into SMSFs in 2013. Likewise, while the ratio of member and employer contributions to SMSFs remained relatively consistent over the period at approximately two to one, in 2013 it was higher, at approximately three to one.
From 2012, the median member contribution was larger than the median employer contribution. For 2013, the median member contribution increased to $20,000, while the median employer contribution decreased to $17,395.
Over the five years, most member contributions were to SMSFs with assets between $500,000 and $5 million. Employer contributions were mostly spread across SMSFs with assets between $200,000 and $2 million.
Analysis shows that the age of an SMSF has no relationship to the proportion of member contributions compared to employer contributions received by an SMSF.10
Total annual contributions to SMSFs over the five years fell by 13%, compared to contributions to all super funds, which grew by over 10% over the same period.
Annual member contributions to SMSFs increased by 5% over this period, while employer contributions decreased by 46%. This decrease in SMSF employer contributions is largely due to a fall in 2013 to $5.5 billion, compared to $7 billion and $7.6 billion in 2011 and 2012 respectively. By comparison, both member and employer contributions to all super funds increased by approximately 10%.
Graph 3 compares contributions to SMSFs as a proportion of all super fund contributions for the years ended 30 June 2009 to 30 June 2013.
At 30 June 2013, contributions to SMSFs represented only 21% of all super fund contributions. This is due to the low proportion of employer contributions to SMSFs (7%). By contrast, member contributions to SMSFs accounted for 50% of all member contributions to super funds in that year.
Graph 3: Contributions to SMSFs as a percentage of total Australian super contributions (member, employer, other and total)
The percentages are calculated as:SMSF (member/employer/other/total) contributions divided by total contributions (member/employer/other/total)
The depiction of other contributions to SMSFs as a proportion of those to all super funds in graph 3 has minimal effect on total super contributions. Less than 2% of total super contributions in each year fall under this category. Analysis of other contributions to SMSFs suggests they are predominately co-contributions, because the median other contributions over the five years directly reflects co-contribution limits for the relevant years.