SMSF contributions almost triple ahead of 1 July 2017 changes

Contributions to SMSFs almost tripled in the December quarter of 2016 according to the most recent SuperConcepts SMSF Investment Patterns Survey.

The survey indicates contribution levels to SMSFs increased to $8,550 in the December 2016 quarter – the same quarter that superannuation legislation passed the Parliament – compared to $3,040 in the September quarter.

SuperConcepts Executive Manager Technical & Strategic Solutions Phil La Greca said the increase in contributions was not surprising and anticipated contribution levels to continue to grow up to the changes taking effect on 1 July 2017.

“The current non-concessional amounts apply for the remainder of this financial year and investors are taking advantage of the limited time available to them. We expect a continued uplift in the level of non-concessional contributions in the lead up to July 1,” he said.

The survey also found a decrease in the number of ‘financial asset loans’.

“The ATO’s safe harbour guidelines on related party loans explains the continued drop in the number of financial asset loans,” said Mr La Greca.

The quarterly SuperConcepts SMSF Investment Patterns Survey is based on a sample of approximately 2,800 SMSFs, administered by Multiport – which is part of the SuperConcepts group, which is owned by AMP.

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