Some commentators have pointed the finger at self-managed superannuation fund trustees, accusing them of exacerbating the housing affordability problem by borrowing heavily and bidding up the price of residential property. However, new figures suggest there is no evidence for that claim.
Investment in residential property by trustees of self-managed superannuation funds has increased from 5.6 per cent of total asset allocation in March last year to 6.2 per cent a year later, according to data complied by SMSF software provider Class.
Over the same period, the proportion of SMSF assets supported by limited recourse borrowing arrangements has increased from 2.3 per cent to 2.7 per cent.
At the end of the March quarter, SMSFs had 30.2 per cent of their assets in shares, compared with 31.7 per cent a year earlier, and 21.8 per cent in cash and term deposits, compared with 22.7 per cent a year earlier.
SMSFs had 17.5 per cent in unlisted trusts (17.4 per cent in 2016), 8.4 per cent in non-residential property (8.5 per cent in 2016) and 4.6 per cent in listed trusts (4.8 per cent in 2016).
The Class figures are drawn from the 1074 SMSF administrators who use its software. More than 60 per cent of the funds it surveys have assets worth $500,000 or more and 37.9 per cent have assets worth $1 million or more.
Class also found that 25.9 per cent of self-managed fund members contributed more than $25,000 to their funds in the 2014/15 financial year. Their contributions averaged $34,100.
Measured by dollar value, 90 per cent of the reduction in contributions under new limits will come from will come from members aged 49 and over.
Close to 20 per cent of SMSF members under 49 contributed more than $25,000 in 2014/15. These contributions averaged $29,800.
Overall, 23.8 per cent of SMSF members will be affected by the news concessional contribution cap of $25,000 a year.
Class estimates that 9.9 per cent of SMSF members have balances greater than $1.6 million. They will be unable to make further non-concessional contributions and will be unable to transfer the full amount to pension phase.