SMSFs are growing — what the latest ATO data tells us

The March 2026 ATO report showed 672,805 SMSFs, 1,239,977 members and estimated assets of $1.06 trillion. By June, those numbers had increased to 680,301 funds, 1,246,552 members and $1.107 trillion in assets.

That is a net increase of 7,496 SMSFs in a single quarter.

For the 2024–25 financial year, the ATO reported average assets of approximately $920,000 per SMSF member and $1.7 million per SMSF. Member contributions totalled approximately $23 billion, while employer contributions totalled approximately $6.9 billion.

These averages are not a target, a minimum balance or evidence of suitability. They provide context on the scale of the sector only.

A self-managed super fund is a superannuation fund controlled by its members.

Generally, the members are also the trustees of the fund, or directors of a corporate trustee. An SMSF can have up to six members.

Unlike an industry or retail super fund, the trustees are responsible for decisions about how the fund operates and invests, as well as making sure the fund complies with superannuation and tax law.

Greater control can be relevant in some circumstances. The other side of that control is responsibility.

There is no single reason.

Some people investigate SMSFs because they want greater involvement in how their retirement savings are invested.

Other reasons may include direct investments, property, combining family super balances, retirement and pension planning, or holding certain assets within super where the rules allow it.

For business owners, the conversation often arises where commercial property or business premises are involved.

Whether any of those features is relevant depends on the circumstances. An investment held by an SMSF must still comply with the superannuation rules, fit the fund's investment strategy and be maintained for the purpose of providing retirement benefits.

This is probably the most important point.

An SMSF is a regulated superannuation fund. It comes with annual obligations and trustee responsibilities.

SMSF trustees are legally responsible for the fund's decisions even where they use accountants, lawyers or advisers to assist them. Trustees remain responsible for complying with superannuation and tax law and managing the fund appropriately.

That generally means dealing with an investment strategy, annual financial statements, an independent SMSF audit, the SMSF annual return, contribution rules, pension requirements where applicable, valuations, record keeping, trustee documentation and keeping fund assets separate from personal or business assets.

Professional advisers can assist with different parts of the work. They do not take the trustee's legal responsibility away.

One question often raised is whether there is a particular super balance required before establishing an SMSF.

There is not one number that applies to everyone. ASIC guidance treats the starting balance as one of a range of factors to consider rather than setting a universal threshold.

The lower the starting balance, the greater the impact fixed administration and compliance costs can have on returns.

Objectives, expected future contributions, investment plans, time, knowledge and willingness to take on trustee responsibility may also be relevant. Assessing these personal factors may involve personal financial advice.

Wakefield Pacific does not apply a universal minimum balance. A fixed dollar threshold on its own would oversimplify the decision.

SMSFs have costs that may not exist, or may be bundled differently, in a large industry or retail fund.

These can include accounting and tax work, annual audit, the ATO supervisory levy, corporate trustee fees, investment fees, financial and legal advice, insurance and actuarial fees in some circumstances.

Moneysmart warns that SMSFs can cost more than retail or industry funds in some circumstances and that fixed costs have a greater impact at lower balances.

That does not make an SMSF appropriate or inappropriate by definition. It means cost is one of several factors that may need to be assessed against the person's circumstances and the purpose of the structure.

Some people want to understand what their super owns, have greater involvement in investment decisions and work with accountants, auditors, advisers, lawyers and brokers where required.

Some people therefore investigate whether an SMSF's features are relevant to their circumstances.

Someone who wants to establish a fund and then have no involvement may have a very different experience.

The time involved varies depending on the fund and the professional support used. The central point is that greater control also means greater responsibility.

Property is one reason SMSFs receive attention. Moneysmart reports that residential and commercial property together represented around 17.5% of SMSF assets, based on ATO data available at 31 December 2025.

SMSF property is subject to specific rules. Investments need to satisfy the sole purpose test.

Residential property generally cannot be acquired from a related party and generally cannot be lived in or rented by fund members or their related parties.

Business real property can be treated differently in some circumstances, including acquisition from or leasing to a related party where the relevant requirements and market-value or commercial-terms rules are satisfied.

These rules do not indicate that property is appropriate for a particular person or fund.

Borrowing through an SMSF can involve a limited recourse borrowing arrangement, separate legal documentation, lender requirements, additional costs, liquidity considerations and superannuation compliance. Credit advice, lender selection, loan products and finance applications are handled by an appropriately licensed broker or lender.

The ATO notes that LRBA rules changed from 10 August 2026. Current accounting, legal, financial and credit advice may therefore be required before documents are entered into.

Where property is contemplated, the legal and fund structure needs to be considered before a contract is signed. Trying to fix the structure afterwards can be much harder.

See our factual overview of SMSF finance preparation and broker referrals →

An SMSF does not make an investment suitable.

It is the structure holding the investment. Buying an asset through super does not remove the normal commercial questions.

Relevant considerations can include expected return, concentration and diversification, liquidity, future benefit payments, how an asset fits the fund's investment strategy and what happens if member circumstances change.

Tax treatment can be one consideration, but it does not determine whether an investment or SMSF is appropriate. Personal investment recommendations need to come from an appropriately licensed financial adviser.

There are protections in large regulated super funds that do not necessarily apply in the same way to SMSFs.

Moneysmart notes that SMSF members do not have access to the same government compensation arrangements that may apply to industry and retail funds if money is lost through theft or fraud.

Disputes within an SMSF also generally sit outside AFCA's jurisdiction. Complaints may still be available against a regulated financial firm that provided advice or another service, depending on the circumstances.

That is another reason sector growth or investment choice should not be treated as a suitability assessment.

There is not a universal SMSF client. These questions are educational starting points, not a suitability assessment:

• Why is an SMSF being considered?
• What is the person trying to achieve?
• What would an SMSF allow that current super arrangements do not?
• Do those potential benefits justify the additional responsibility and cost?
• What assets might the fund hold?
• How would the fund operate if member circumstances changed?
• Which accounting, audit, legal, financial and credit professionals may need to be involved?

The answers may identify matters requiring professional advice. They do not, by themselves, establish that an SMSF is suitable.

Establishing an SMSF should not start with the question of which property, shares or other investment you want to buy.

An SMSF should not be established simply because there is a particular asset you want to buy.

The fund itself, the trustee responsibilities and the broader retirement strategy need to be considered separately from the merits of the proposed investment.

There are a number of separate issues that may need to be considered before deciding whether an SMSF is appropriate for your circumstances. Depending on the issue, accounting, tax, legal, credit or personal financial advice may be required.

Why is the SMSF being considered? What is the person trying to achieve? What would it allow that current super arrangements do not? Do those potential benefits justify the additional responsibility and cost?

Existing balances, expected future contributions and fixed costs relative to fund size may all be relevant. There is no universal Wakefield Pacific minimum balance.

Potential costs include accounting, tax, audit, the ATO supervisory levy, corporate trustee costs, legal and financial advice, investments, insurance and actuarial work where relevant.

Property and borrowing can add legal, finance, valuation, lender and transaction costs.

Trustees are responsible for complying with superannuation law, maintaining records, arranging the annual audit, lodging the SMSF annual return, keeping fund assets separate and making decisions in accordance with their obligations.

General regulatory considerations include investment objectives, risk, diversification, liquidity, cash flow, members' circumstances and the fund's ability to pay future benefits.

This article does not recommend what any fund's investment strategy should contain beyond noting these general obligations.

Trustees need to consider insurance for members as part of the fund's broader obligations and investment strategy.

Decisions about insurance products or levels of cover may require personal advice from an appropriately licensed financial adviser.

Death benefit nominations, trustee succession, control following death or incapacity and interaction with broader estate planning may need to be addressed. Legal and/or financial advice may be required.

If property is contemplated, relevant matters can include SMSF investment rules, related-party rules, the sole purpose test, liquidity, concentration, ongoing expenses, whether borrowing is required, legal structure and timing before a contract is signed.

These considerations do not indicate that property is appropriate for a particular person or fund.

SMSF borrowing can involve a limited recourse borrowing arrangement, separate legal documents, lender requirements, additional costs, liquidity considerations and superannuation compliance.

Credit advice, lender selection, loan products and finance applications are handled by an appropriately licensed broker or lender.

Contribution caps, the ability to make future contributions and any proposed contribution strategy may be relevant. This article does not recommend a contribution amount or strategy.

Where members are approaching or in retirement, pension commencement, minimum pension requirements, liquidity and member benefit payments may become relevant.

Personal retirement or pension advice should be obtained from an appropriately licensed financial adviser where required.

What happens if the SMSF stops being appropriate?

Member death, incapacity, relationship breakdown, overseas relocation, loss of interest in managing the fund, insufficient liquidity and winding up the SMSF can all affect its operation.

Establishment is not the only decision. Future administration, succession and exit also need to be contemplated.

Establishing and operating an SMSF may require input from several professionals. One professional does not replace the others.

May assist with accounting, tax, SMSF establishment administration, annual compliance, tax implications, financial statements and returns within their professional scope.

May be required for personal advice about whether an SMSF is suitable, transferring super, investments, financial products, insurance and retirement planning.

May be required for trust deed matters, property and other legal documents, estate planning, LRBA documentation and other legal issues.

Where borrowing is involved, credit advice, lender selection, loan products and finance applications are handled by the appropriately licensed broker or lender.

More than 680,000 SMSFs. More than 1.24 million members. More than $1.1 trillion in assets.

SMSFs are clearly an established and growing part of Australia's retirement system.

But popularity is not a reason to establish one.

Whether an SMSF is appropriate depends on individual circumstances and should not be determined from this article.

Relevant considerations can include cost, complexity, administration, trustee responsibility, investment flexibility and practical benefit. Personal financial advice may be required to assess those matters for an individual.

Wakefield Pacific works with SMSFs across the accounting, tax and administration side of the fund.

We can help clients understand the accounting and tax requirements, establish and administer the fund within our professional scope and work alongside the other advisers involved.

We do not treat the accounting decision to establish an SMSF as the same thing as providing personal financial advice that an SMSF is suitable for you.

Where the decision involves your objectives, financial situation, investments, insurance or retirement strategy, we may recommend that you obtain advice from an appropriately licensed financial adviser before proceeding.

Where legal or lending advice is required, we may similarly recommend the appropriate specialist.

We can explain the accounting, tax, administration and structural considerations within our professional scope and work with appropriately licensed advisers where other advice is required.

Explore our SMSF services →