At June 2018, asset value in accumulation phase was $422bn, a 90% increase from March 2017. The hard hitting impact of this change is that almost 25% of SMSF tax free assets have lost that status.
Kevin Bungard, Class CEO said: “The forced shift of assets out of pension phase has dramatic tax implications for SMSFs. Assuming a modest return on assets for the 2018 financial year, we estimate this shift will result inan increase in the gross tax due on SMSF earnings of nearly 90% from 2017 – a massive impact.”
A silver lining of Super Reform change highlighted by the Report, is that the increased adoption of contribution splitting and recontribution strategies has led to a significant improvement in the gender imbalance in SMSF assets and balances.
Download the Class June 2018 SMSF Benchmark Report.