More Australian small business owners are opting to take on self-managed super funds.
A survey released by research firm Cameron Research Group revealed that 67 per cent of small business owners are choosing an SMSF, ostensibly so they have greater control of their funds.
Some 750 Australian small business owners were surveyed, with results showing that a SMSF is the preferred superannuation system for 40 per cent of home-based businesses, compared to the 21 per cent of small businesses outside of the home.
The research showed small business owners were more than willing to accept responsibility for any faults that arise in funds and that 91 per cent of those business owners surveyed were completely satisfied their SMSFs.
Yet as popular as SMSFs are becoming, there are still limitations.
Westpac submitted a response to the Financial System Inquiry’s interim report, and said SMSFs carry complexity, ongoing administration and unique risks.
“Westpac encourages the Inquiry to consider the introduction of appropriate additional regulatory requirements before an SMSF is able to be established,” the bank said in its response.
Westpac also pointed out that a lack of understanding could be harmful when it comes to self-management and the economic system as a whole.
“[There are] important issues for the government and SMSF members, including risk of shortfalls in retirement savings due to poor management and/or mismanagement; calls to compensate SMSF members in the event of a failure; and poor understanding of the economic and financial system implications of the sector.”
