By Paula Day, Head of National Key Accounts and Broker Private Wealth, HUB24
Drawing on insights from the 2026 Class Annual Benchmark Report and a panel discussion at the Class Ignite Conference held in Sydney in September, this article explores the trends reshaping the SMSF sector and what they mean for private wealth advisers supporting High-Net-Worth (HNW) clients.
The discussion featured Class CEO Tim Steele, SMSF Association CEO Peter Burgess, Heffron Consulting Managing Director Meg Heffron, Accurium Principal Melanie Dunn and NowInfinity General Manager, Kate Anderson.
Key takeouts:
- Wealth creation beyond retirement – Record SMSF growth suggests a shift in how Australians view superannuation, increasingly viewing it as a long-term wealth creation solution.
- Division 296 expands strategic planning needs – The changes highlight the importance of early planning, with tax, retirement income, asset ownership and succession decisions becoming increasingly interconnected.
- Advice matters more than ever – Growing regulatory complexity is increasing demand for strategic advice across tax, retirement, estate and succession planning.
The Self-Managed Super Fund (SMSF) sector is entering a new phase of growth, engagement and complexity. Given the prominence of SMSFs among high-net-worth (HNW) households, this shift offers valuable insight into the trends shaping wealth creation and retirement planning.
According to the Investment Trends 2025 HNW Investor Report, 69% of Australian HNW investors — those with more than $1 million in investable assets — have an SMSF, representing approximately 525,000 investors.
The latest Class Benchmark Report found more than 52,000 SMSFs were established in FY26, the highest annual total on record. The sector now comprises more than 680,000 funds and around 1.25 million members, with this growth continuing in the context of significant regulatory change.1
For private wealth advisers servicing HNW clients, the insights from the Class Benchmark Report go beyond the headline establishment numbers, highlighting how Australians are consolidating retirement savings, managing household wealth and exercising member choice, moving between superannuation solutions as their circumstances change.
They also point to a growing need for advice as regulatory and tax settings become more complex.
Strong growth reflects changing attitudes to wealth
The record number of SMSF establishments in FY26 follows two previous years of strong growth, evidence that the continued expansion of the sector is more than a short-term response to market or policy conditions.
During the benchmark panel discussion, SMSF Association CEO Peter Burgess said Australians are increasingly treating superannuation as an active wealth creation vehicle, reflecting a shift from retirement-focused planning to broader long-term wealth management.
“We’re seeing more and more people, particularly younger ages, seeing their superannuation differently now, seeing it as a key part of their wealth creation plans. It’s not something they just look at when they retire.”
The generational profile of new SMSF establishments highlights this shift, with Gen X accounting for 45.1% and Millennials 44% of new establishments in FY25.
Together, the two generations represented almost nine in ten newly established funds with newly established Class funds recording an average balance of $467,000 in FY25.3
Division 296 broadens the advice conversation
As at 30 June 2026, almost 73% of Class SMSFs held a positive net unrealised capital gains position. In FY26 8.8% of Class SMFSs had at least one member balance above $3 million, while a further 9.4% had at least one member balance between $2 million and $3 million.4
The implications of Division 296 may therefore extend beyond clients currently above the $3 million threshold. Balance growth, contributions, asset appreciation, the death of a spouse and the consolidation of benefits could bring a broader group into scope over time.
Accurium Principal Melanie Dunn said: “It’s not just the people with more than $3 million. It’s the people with two to three million, and even those with lower balances who are part of a couple, who could be impacted by Division 296 in their future as their super continues to grow.”
The one-off cost-base decision creates a need for advisers and accountants to identify potentially impacted clients early and consider the long-term implications. Accurate valuations, reliable member balances and high-quality fund data will be essential to this process.
For private wealth advisers, Division 296 may need to form part of broader discussions about retirement income, contributions, asset ownership, succession planning and the distribution of wealth between spouses.
SMSFs form part of an evolving retirement journey
Of the 4,688 Class SMSFs wound up in FY25, 51% recorded no rollover to another super fund, meaning the remaining fund balance was instead paid out as member or death benefits. Among the remaining 49% that recorded a rollover, 41.6% recorded a rollover to a retail fund.5
“If half the funds that wind up are being paid out as benefit payments, that’s kind of super has done its job, hasn’t it?” said Heffron.
The findings position SMSFs as one potential stage in a client’s broader financial journey, rather than necessarily a permanent destination. A structure that is appropriate during wealth accumulation, business ownership or early retirement may become less suitable as a client ages, their family circumstances change or estate administration becomes a greater priority.
For private wealth advisers, this underlines the importance of reviewing structures over time and planning for transition well before incapacity, death or declining trustee engagement makes change more difficult.
Easier access increases the importance of advice
Digital establishment tools, online research, AI and specialist administration services have helped make SMSFs more accessible. These developments can reduce friction, but they do not remove the legal and financial obligations associated with operating a fund.
NowInfinity General Manager Kate Anderson noted: “I think we need to be really conscious that we’re continuing to educate the clients, the members, and trustees, and also make sure that they are aware of the risks involved in setting up an SMSF, but also the responsibilities as well.”
For private wealth practices, there is an opportunity to connect digital efficiency with specialist advice. This may include supporting clients in the development of an appropriate investment strategy, coordinating financial and tax advice, addressing trustee responsibilities and planning for the eventual transfer or wind-up of the fund.
1 ATO SMSF Quarterly Statistical Report
2-5 Class 2026 Annual Benchmark Report
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