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Self-Managed Super Funds (SMSFs) are thriving, with more Australians taking control of their retirement savings than ever before!

According to new research from the University of Adelaide’s International Centre for Financial Services (ICFS), SMSF’s have outperformed APRA-regulated funds by 1.2 percentage points over the five years up to
30 June 2023.

The study revealed that over this five-year period, SMSF’s achieved an annualized rate of return (ROR) of 6.5%, which surpassed the 5.3% ROR of APRA-regulated funds.

Furthermore, the latest SMSF Annual Statistical Overview from the Australian Taxation Office (ATO) highlights the sector’s continued growth, investment trends, and demographic shifts.

The key takeaways from the report for the financial year ending June 30, 2024.

SMSF Growth and Membership Trends

• The number of SMSFs reached 625,609, a 4.5% increase from the previous year.
• 32,747 new SMSFs were established, a 21% rise from 2022-23.
• The SMSF sector now has over 1.15 million members.
• SMSFs collectively hold $990.4 billion in assets, accounting for 25% of total superannuation assets in Australia.
• Over the past five years, SMSFs have grown 11%, with an average of 27,000 new funds established annually.

Read the full ATO report here

Explore SMSF data on data.gov.au

SMSF Asset Growth & Investment Trends

• The average SMSF asset size increased 3% to $1.58 million.
• The average assets per SMSF member also rose 3%, reaching $859,131.
• 74% of SMSF assets are concentrated in these five key areas:
  • Shares (27.5%) – mostly Australian-listed stocks
  • Cash & Term Deposits (17.5%) – safe and liquid investments
  • Unlisted Trusts (12.4%) – private investment structures
  • Non-Residential Property (10%) – commercial real estate
  • Limited Recourse Borrowing Arrangements (LRBAs) (6.5%) – leveraged property investments

Borrowing & Property Investments

• 11.4% of SMSFs have borrowings, with an average loan size of $340,000.
• 97% of SMSF borrowing is linked to property investments.
• Total SMSF property holdings have grown to $200.5 billion, up 31% over five years.

SMSF Trustee & Membership Preferences

• 70% of SMSFs now have a corporate trustee, with 88% of newly established SMSFs in 2023-24 opting for corporate trustees.
• 68.1% of SMSFs have two members, typically spouses or partners.
• Single-member SMSFs make up 25.1%, while funds with 3 or more members remain rare.

Members

• 66% of SMSF members are aged 50+, with an average member age of 62.
• The median SMSF member balance is $411,000, growing to $1.3M+ for those aged 70+.
• 31% of SMSF members also hold non-SMSF super funds.

Compliance & Audit Trends

• Loans to members being the most common compliance breach.

What This Means for SMSF Investors

The SMSF sector remains a powerful retirement savings vehicle, but navigating its complexities requires professional expertise.

At KBD Professional Services, we specialize in helping individuals and businesses navigate the complexities of SMSFs, ensuring compliance. We help SMSF trustees with:

• Compliance & Audit Support
• Investment Strategy General Advice
• Retirement Planning
• Structuring SMSFs with Corporate Trustees

With the SMSF landscape continuously evolving, staying informed is key to making strategic financial decisions.

📞 Need guidance on your SMSF? Contact KBD Professional Services today!