What’s Happening in the SMSF Space and What It Means for You

The latest Class Annual Benchmark Report, a Hub24 company, provides a clear picture of how self-managed super funds (SMSFs) are performing in 2025. The findings highlight trends, opportunities, and practical considerations for trustees who want to get the most from their funds. 

Here are some of the key takeaways and how they could affect the way you manage your fund. 

​SMSFs are built to last 
The average SMSF has now been running for more than 15 years, and most have been in place for over a decade. When funds do eventually close, it’s usually after many years of steady growth, with average closing balances close to $800,000. 

Overall, SMSFs continue to deliver strong results for people who stick with them. For trustees, this highlights the importance of good long-term planning. Regular deed reviews, staying on top of compliance, and getting help when moving from the accumulation phase to retirement can make a big difference over time. 

More trustees are looking for advice 
There’s a clear shift happening in the SMSF space. Even though adviser numbers have dropped, more trustees are now seeking professional support. Around one in three SMSFs are planning to get advice in the near future. 

This reflects how complex SMSFs have become, especially when it comes to investment decisions, compliance, and retirement planning. If you’ve been managing your SMSF on your own, it may be worth checking in with a trusted adviser to make sure everything is still working the way it should.
 
Keeping an eye on possible tax changes 
You may have heard about the proposed new tax, called Division 296. It hasn’t been legislated yet (just recently the Government have scaled back their initial intent to tax unrealised gains) but if it goes ahead, it would apply to individuals with more than $3 million in super.  

The report found that about one in three affected funds hold property, which can be harder to sell quickly if looking to plan differently. It also showed that some funds may not have enough cash available to cover the new tax if it comes in. 

The key takeaway is to plan ahead. If your balance is approaching the $3 million mark, make sure your records and valuations are up to date, and review your fund’s liquidity. That way, you won’t be caught out if (and when) the rules do change. 

Property remains popular, but diversification matters 
Property continues to be one of the most common investments inside SMSFs. Almost 30 percent of funds hold property, worth around $74 billion in total. However, many trustees are now reviewing how much of their fund is tied up in property, given the possible Division 296 changes. 

Residential property is most common in smaller funds, while commercial property is more typical in larger ones. The report also showed that most SMSF loans are linked to residential properties. 

For trustees, this reinforces how important it is to stay diversified and make sure your fund has enough liquidity to meet expenses or tax obligations without having to sell major assets quickly. 

More SMSF members are transitioning to retirement 
SMSF members are generally more proactive when it comes to moving into retirement income streams. Members aged 60 to 64 are more than twice as likely to start a Transition to Retirement or full Pension phase than people in large retail or industry funds. 

Nearly all SMSF members over 65 are already in pension phase. This shows that many are taking advantage of the tax benefits that come with shifting from accumulation to retirement. If you’re getting close to retirement, it’s a good time to review your position and make sure you’re maximising those benefits. 

Managing death benefits with flexibility and control 
Another key benefit of an SMSF is the flexibility it provides when managing death benefits. The data showed that around one in three deceased members had a reversionary pension in place, allowing income to continue smoothly to their nominated beneficiaries. 

SMSFs tend to move faster than large super funds when processing these benefits, especially when the right structures and nominations are already in place. This highlights the value of having clear, up-to-date estate planning documents for your fund. 

The bottom line 
The 2025 findings show that SMSFs remain strong, stable and an important part of Australia’s retirement landscape. Trustees are staying engaged, balances are growing, and more people are seeking advice to get the most from their fund. 

If you’d like to talk about what these trends mean for you, or whether your fund is set up for long-term success, our team at Hansens is always happy to help.