With just under 42,000 new SMSFs established in the 2024/25 financial year, the sector now comprises 653,062 funds managing $1.05t in assets, with the average member balance on Class rising 4.3 per cent to just under $1m.
Who’s driving growth?
- Millennials (30–44 years) account for 37.3 per cent of new SMSF establishments.
- Generation X (45–59 years) make up 49 per cent of new funds.
- Average age of new SMSF members is 48, down from 61.6 across all members.
This shift reflects a growing appetite for financial independence, investment flexibility, and long-term wealth creation among younger Australians.
Women are leading the charge
The report highlights that female SMSF members are increasingly active, suggesting that women are taking greater ownership of household finances and retirement planning:
- Made 15 per cent more downsizer contributions than males in the last financial year.
- Achieved 4 per cent faster balance growth than males since 2017.
- Are embracing balance equalisation strategies, redistributing super balances within couples to optimise outcomes.
- The introduction of the proposed ‘Tackling the gender super gap Bill’ could see this gap decrease further providing overall opportunities between spouses.
Direct property remaining a popular asset
SMSFs continue to be a popular vehicle for property investment:
- 29.8 per cent of all SMSFs having allocation of direct property.
- Residential property accounts for nearly half of SMSF assets in smaller funds and commercial property accounting for nearly one third in larger funds.
- 92 per cent of Limited Recourse Borrowing Arrangements (LRBAs) are tied to residential property.
- SMSFs seem to offer a pathway for younger Australians to enter the property market, often leveraging their super to invest in assets that align with their long-term goals.
Longevity and performance
SMSFs are not short-term experiments, with class data showing:
- Average fund age is 15.6.
- 66 per cent of funds have operated for more than a decade.
- Average fund balance is $1.9m.
- Average member balance is $990,000.
These figures reflect the continuing value SMSFs provide in building and preserving wealth over time.
Earlier action on retirement planning with SMSFs
Class SMSF members continue to show higher engagement in transitioning from accumulation to
retirement income streams than members in APRA funds:
- Members age 60-64 in SMSF are 2.3 times more likely to commence a Transition to Retirement Income Stream (TRIS) than members of an APRA fund.
- 93 pe cent of class members over age 65 are already in retirement phase as opposed to 49.2 per cent of APRA fund members.
- SMSFs also tend to hold higher balances at this retirement stage compared to APRA funds.
- Average member balance is $990,000.
Flexibility and planning for death benefits
It’s critical to be aware of structuring your SMSF for flexibility. Some strategies include:
- Strategic SMSF structuring, guided by professional advice, provides members with optimal control over their death benefit strategies.
- Enables tax-effective wealth transfer through tax-free income streams for dependents, while also implementing strategies to minimise tax obligations on lump-sum distributions to non-dependents.
What about Division 296?
The Division 296 introduced as part of the government’s superannuation reform, proposes an additional 15 per cent tax on earnings for individuals with total super balances exceeding $3m.
- It is expected to have a larger impact than previously estimated. Analysis of FY24 Class tax return data shows that approximately 18,200 Class members could be affected, each facing an average liability of $51,700 if the tax was implemented for FY24.
- Liquidity issues of funds effected rose from 5-6.7 per cent, with more than one in three of these funds holding direct property.
- Without indexation of the $3m, more members will be captured over time.
- Conversations with financial advisers may alleviate some Division 296 tax, through rebalancing, diversification and reviewing alternative structures for managing wealth above $3m outside of superannuation.
Why are SMSFs building momentum?
SMSFs continue to attract Australians who value:
- Control over investment decisions
- Flexibility in asset selection
- Transparency in fund management
- Strategic wealth creation aligned with personal values and goals
As legislation evolves, SMSFs remain a resilient and adaptable option for those seeking to shape their retirement journey with confidence.
We’re here to help
If you’d like to discuss further findings from the Class Annual Benchmark Report 2025 or how a SMSF could benefit you, please reach out to one of our expert advisors today.
The above information is provided as an information service only and, therefore, does not constitute financial product advice and should not be relied upon as financial product advice. None of the information provided takes into account your personal objectives, financial situation or needs. You must determine whether the information is appropriate in terms of your particular circumstances. For financial product advice that takes account of your particular objectives, financial situation or needs, you should consider seeking financial advice from an Australian Financial Services licensee before making a financial decision in relation to any of the matters discussed.
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