According to the latest figures from APRA, Self-Managed Super Funds' assets have grown by 12% for the year ending March 2022, while APRA super funds have grown by 9.6%.

This means that SMSFs now manage $892 million in assets, which accounts for 26% of all superannuation funds.

SMSFs are becoming more attractive to individuals and small business owners as SMSFs can invest directly in residential or commercial properties, to take advantage of the concessional tax rate of 15%. This applies to both the net rental income and any capital gains, which in most cases can be significantly lower than the marginal personal income tax. To be entitled to this 15% rate, your SMSF has to be a 'complying fund' that follows the ATO's rules for SMSFs.

We have also seen the costs involved with setting up and managing an SMSF to have reduced significantly and can be more cost-effective compared to a standard super fund.

APRA attributed the growth in superannuation assets to the increase in household savings during the pandemic and government fiscal stimulus.