More Fake News About Self-Managed Super Funds (SMSF’S)

Sydney Author and Chartered Accountant Wayne Wanders, has stated that the report “ATO SMSF Annual Briefing 2016” and the associated media release recently issued by Industry Super Australia shows that it is not just America which suffers from Fake News. 

Mr Wanders said that “the Industry Super Australia (ISA) economists are comparing apples with oranges when they compare the 2015 performance of Self-Managed Superannuation Funds (SMSF’s) with the performance of Australian Prudential Regulation Authority (APRA) regulated funds.”

“The ISA economists are using SMSF return data provided by the Australian Taxation Office (ATO) to substantiate their claims that APRA regulated funds, and industry funds in particular perform better than SMSF’s, including asserting that SMSF’s with less than $2 million in assets is unviable.”

“But there are a couple of significant differences between how the ATO measures the return of a SMSF, verses how the returns of APRA regulated funds are measured” said Mr Wanders.

“Firstly, the ATO includes member’s insurance premiums as an expense when determining the return of a SMSF.  These are not included in the returns of APRA regulated funds.”

“And secondly, the returns quoted by APRA regulated funds do not include the administration fees APRA regulated funds typically charge their members outside of their investment earnings.”

Mr Wanders said “These differences have the effect of understating SMSF returns and overstating the returns provided by APRA regulated funds.  And because of this, the key conclusions drawn by the ISA economists about the viability or otherwise of SMSF’s are misleading to people who are considering setting up a SMSF.”

“A classic case of Fake News.”

Click below to see the full version of the media release.

The Real Reason for Sydney’s House Price Growth – Is successive governments under investment in creating jobs in Regional Australia

A new report released today by Sydney Author and Chartered Accountant Wayne Wanders, shows that Mum and Dad negative geared property investors are not behind the rise in Sydney Property Prices. 

Mr Wanders said that “if the same negative gearing tax laws exist across Australia, why can Sydney house prices rise 94 per cent in the last 10 years, but Brisbane house prices only increase by 51 per cent and only 12 per cent in Perth.”

“Why can Sydney house prices go up significantly higher than regional NSW when the same rules are in place?”

“The facts show that negative geared Mum and Dad investors are not the prime reason behind the growth in Sydney house prices” said Mr Wanders.

Mr Wanders believes that the real cause of Sydney’s house price growth, is that successive governments have under invested in regional towns to drive jobs growth in those towns.

“And this lack of jobs is pushing people back into Sydney, placing pressure on Sydney’s housing stock and driving up house prices”.

Click below to see the full version of the media release and report “The Real Reason For Sydney’s House Price Growth”

A new report released today (19 April 2016) by Sydney Author and Chartered Accountant Wayne Wanders shows that the economic benefit to the Australian economy by taxpayers who have negatively geared property is substantially higher than the income tax “subsidy” they receive.

Mr Wanders said that the 1.2 million individual taxpayers who had negatively geared properties in the 2013 – 2014 tax year contribute in excess of $10 billion dollars annually in economic benefit to the Australian economy.

“This is substantially higher than the estimated $2.6 billion dollar income tax “subsidy” these 1.2 million taxpayers received,” said Mr Wanders.