The self-managed super fund (SMSF) industry has seen a spike in the number of new fund registrations, as negative investment returns drives more people to take control over their superannuation savings.
The number of registrations of new SMSFs increased by 19 per cent in the period from September 2008 to January 2009, compared to the same period a year earlier, Australian Taxation Office (ATO) commissioner Michael D'Ascenzo said.
The increase in registration was the result of more people saying they could do it themselves, D'Ascenzo said.
But the trend did not seem to last after the number of new registrations softened in February this year.
The tax commissioner made the comments during the annual Superannuation Fund Professionals' Association of Australia (SPAA) conference in Adelaide.
He also urged caution in drawing conclusions from the increased registrations, because there are no figures available on the number of funds that have been wound up. Most SMSFs have not yet filed their performance reports for the 2007-08 year.
The downturn in the markets has put many investors in a difficult situation and D'Ascenzo said the ATO will take this into account when assessing tax submissions.
"Our approach is to be as reasonable and fair to people as we can," he said.
But the crisis has also caused more work for the ATO in enforcing regulations, as more people are trying to release money from their super funds before they are eligible to.
"The other side of the coin is that, when you have a downturn, people are likely to be more aggressive, and it is a matter for the ATO, APRA (Australian Prudential Regulation Authority), ASIC and others to be vigilant with users of Australia's superannuation system."
