Are you running your own self-managed super fund (SMSF), or thinking about starting one? The latest Class Annual Benchmark Report for 2025 has just landed, and it’s packed with insights that matter for your retirement planning. Here’s what you need to know:
SMSFs Are Growing – And So Is Member Engagement
- Bigger Than Ever: SMSFs now hold over $1 trillion in assets, making up nearly a quarter of all super in Australia. More Australians are choosing to take control of their retirement savings.
- Long-Term Focus: The average SMSF has been running for over 15 years. Most are set up for the long haul, not as a short-term experiment.
- Younger Members Joining: More Gen X and Millennials are setting up SMSFs, with the 35–44 age group now making up a third of new funds.
How Are SMSFs Investing?
- Shares and Property Lead the Way: Most SMSFs invest in Australian shares and direct property. Residential property is more common in smaller funds, while larger funds often hold commercial property.
- ETFs on the Rise: Exchange Traded Funds (ETFs) are becoming more popular, especially with younger trustees, because they offer easy diversification and low fees.
- Crypto and Alternatives: A small but growing number of SMSFs are investing in crypto assets, mainly among younger members.
Contributions, Gender Gaps & Retirement
- Contributions Are Up: Both before-tax and after-tax contributions increased last year, with many members making the most of higher contribution caps.
- Women Catching Up: The gap between men’s and women’s SMSF balances is narrowing, thanks to more women making catch-up and downsizer contributions.
- Proactive Retirement Planning: SMSF members are more likely than those in large funds to start retirement income streams as soon as they’re eligible, helping to maximise tax benefits.
What’s Changing with Tax and Regulation?
- Division 296 Tax Update: There’s been a lot of talk about a new tax on super balances over $3 million. The good news? It’s now expected that unrealised capital gains won’t be taxed under the latest proposals. This should ease concerns about having to sell assets like property just to pay tax. Still, it’s important to keep your fund’s liquidity and valuations up to date.
- Advice Is More Important Than Ever: Only about a quarter of SMSFs currently get professional advice, but more trustees are planning to seek help. With rules and strategies getting more complex, expert guidance can make a real difference.
Keeping Costs Down & Staying Efficient
- Competitive Costs: SMSFs remain cost-effective, with average running costs similar to large super funds.
- Embracing Technology: More funds are using digital tools and automation to make administration easier and stay compliant.
What Should You Be Thinking About?
- Get the Right Advice: With the rules changing and the sector growing, professional advice is more valuable than ever – whether you’re already running an SMSF or just starting out.
- Diversify for Safety: Don’t put all your eggs in one basket. Diversification remains key to managing risk and ensuring your fund can weather market ups and downs.
- Plan for the Future: SMSFs offer flexibility and control, especially for estate planning and managing death benefits. But timely action and good planning are essential.
Final Thoughts
The SMSF sector is stronger and more dynamic than ever. Whether you’re a long-time trustee or just exploring your options, staying informed and proactive will help you make the most of your super. If you have questions about how these trends affect your fund – or if you’re considering setting up an SMSF – now is a great time to reach out for a chat.
