The Rise of Self-Managed Super Funds

Australians are taking control of their financial futures like never before. The continued growth of the Self-Managed Superannuation Fund (SMSF) sector is not just a trend, it is a clear signal that more people want to be in the driver’s seat when it comes to their retirement planning.

As a firm that works closely with a broad range of SMSF clients, we were intrigued, but not surprised, by the latest figures released by the Australian Taxation Office (ATO) with respect to the 2022–2023 financial year.

SMSF Sector at a Glance:

• As at 30 June 2023, there were over 625,000 SMSFs registered in Australia—an ever-growing number.

• SMSFs collectively held more than $990 billion in assets, representing approximately 25% of all superannuation assets nationally.

• The top five asset classes held by SMSFs were:

  • Listed shares – 27%

  • Cash and term deposits – 17%

  • Unlisted trusts – 12%

  • Non-residential real property – 10%

  • Limited recourse borrowing arrangements (LRBAs) – 6%

• The estimated return on SMSF assets for 2022/2023 was an impressive 10.1%.

• There are now more than 1.1 million SMSF members, with a median age of 63—typically people who are serious about securing their financial future.

• Interestingly, 70% of SMSFs operate with a corporate trustee, suggesting a growing awareness of the structural and succession planning benefits.

So Why the Surge in SMSFs?

Because more Australians want more control. Because people are tired of seeing their retirement savings in “default” super funds that feel distant, are impersonal and lack transparency. For many, an SMSF is about more than investment, it is about independence, empowerment and personal legacy.

Whether it is the flexibility to invest in premises for your business, the ability to diversify through private or unlisted assets, the option to strategically use leverage (borrow) to amplify returns, or simply the desire to manage things with greater transparency, SMSFs offer a sense of ownership that traditional funds cannot.

And it is not just for the ultra-wealthy or investment experts. With the right guidance, an SMSF can be an effective and tax-efficient vehicle for families, professionals, and business owners alike.

For more information and/or to see if an SMSF might be appropriate for you and your family, please do not hesitate to contact our office on 1300 022 267.