The current Australian Taxation Office (ATO) data about self-managed superannuation fund (SMSF) assets is two years out of date and about as useful as “looking in the rear-view mirror”, says Tria Partners' Andrew Baker.
The ATO releases statistics about self-managed superannuation fund (SMSF) assets every year, he said – but the numbers are 18 months in arrears.
The most recent statistics on SMSF asset holdings are from June 2011, said Mr Baker.
“It’s very hard to get a comprehensive view of what’s going on because the data is so far behind. Even then, the data is not as granular as you would like it to be,” he said.
SMSF Professionals Association of Australia's Graeme Colley last week pointed to ATO statistics as evidence that “gearing is not the issue its critics allege”.
“According to ATO statistics, geared property in SMSFs makes up less than one half of one per cent (0.4848 per cent) of their total investments,” said Mr Colley.
But as far as Mr Baker is concerned, using those statistics is akin to looking into the night sky and drawing conclusions about the stars.
“That light has been travelling for a thousand years and you’re looking into the past. It’s the same with SMSF data – you’re looking into the past,” he said.
A more up-to-date indicator of SMSF property gearing might be lending activity, he said – pointing to the RBA’s comments in March that bank lending to SMSFs has grown in recent years.
“You’ll see on most lenders’ websites now there’s an SMSF lending product,” said Mr Baker.
“Overall credit growth has been pretty slow, so lenders are looking for which part of the credit market is growing,” said Mr Baker.
Lenders are also creating more product for the demand, which is adding fuel to the fire, he said.
An ‘eye-catching’ case in point is the recent issue of the first commercial mortgage-backed security (CMBS) since 2011 by specialist lender Liberty Financial, wrote Mr Baker in his recent ‘Trialogue’ column.
Twenty-seven per cent of the $250 million CMBS pool comprised of SMSF loans, he said.
“It suggests that if a small lender like Liberty is already securitising SMSF loans, there is a fair bit of movement at the SMSF gearing ranch,” said Mr Baker.
“A lot can happen in two years when a product push is on,” he added.
