1.2 million Australians now use SMSFs. Here’s who they are – and how we can help you decide if it’s right for you.
Self-managed super funds (SMSFs) are no longer a niche strategy. Around 1.2 million Australians are members of more than 650,000 SMSFs, holding over $1 trillion in assets and almost a quarter of Australia’s total super pool.
So who actually chooses to run their own fund – and could that be you?
Who typically uses an SMSF (and why)?
SMSFs usually suit people who already have meaningful super balances and want to use strategies that are only available in an SMSF. In practice, we see four main groups:
1. Practice & business owners
Want their SMSF to own their rooms or warehouse as Business Real Property, leased back to the business/practice at market rent. Often combined with an LRBA (limited recourse borrowing) so the fund can acquire the property over time.
2. Property structure builders
Use SMSFs alongside non-geared unit trusts (13.22C) to hold property in a compliant way, or to co-invest with other entities while staying inside the super rules.
3. Strategic pre-retirees
Are focused on tax efficiency as they move towards retirement. They look closely at:
- Exempt Current Pension Income (ECPI) – making more of the fund’s investment income tax-free once a retirement pension starts; and
- Capital Gains Tax (CGT) timing – choosing when to realise investment gains so more of the growth is taxed at a lower rate or not at all in retirement.
In simple terms, they want their SMSF set up so that more of their future investment earnings are received tax-free.
4. Hands-on investors & wealth builders
Want to bring existing share portfolios into super via in-specie contributions, choose their own investments, and work with advisers to keep it compliant (sole purpose, arm’s-length terms, and enough liquidity for pensions and expenses).
If you’re reading this thinking “that sounds like me”, or you’d like to explore how the SMSF-only toolkit could work in your situation, it’s a good time to talk to us about whether an SMSF is appropriate for you.
SMSFs: Not just for the ultra-wealthy
Despite the perception that SMSFs are only for very high earners, around half of members report taxable income below $80,000 a year.
Typical patterns from recent ATO data:
- Most funds still have one or two members – often a couple planning together.
- The median member balance is around $530,000 (with many higher and many lower).
- New members are increasingly in the 35–54 age bracket, using SMSFs as part of a long-term wealth-building plan, not just at retirement.
In other words, SMSFs are mainly about mindset and involvement, not just income level.
What SMSF people tend to want
From our experience and the national statistics, SMSF trustees usually want:
- More choice – especially direct Australian shares, commercial or residential property, and tailored asset mixes.
- Joined-up tax and investment strategy – making sure super, trust structures, personal assets and business or practice structures all work together.
- Clarity and control – knowing why they hold certain investments, not just accepting a default option.
Alongside these benefits come real responsibilities: setting up the right structure, staying within superannuation and tax rules, lodging returns on time, and managing investment risk. It’s crucial that the advantages outweigh the costs for your specific situation.
Thinking about an SMSF? Talk to us first.
Whether you see yourself as a Controller, Self-Directed Investor, Coach Seeker or Outsourcer, the key question is:
“Is an SMSF the right tool for me – right now?”
At JTCA, we help clients explore SMSFs by looking at:
- Whether your balance, age and goals support an SMSF
- How an SMSF would fit with your existing tax, trust and business structures
- What’s involved in setup, ongoing administration and compliance
- How you might invest inside an SMSF – including property, shares and income strategies
- When it makes sense to keep your current super fund and simply optimise it instead
👉 If you’re curious about SMSFs – or already have one and want a review – we’d love to chat.
Reply to this email, contact your usual JTCA adviser, or reach us on 03 9008 9186 or email info@jtca.com.au to arrange a discussion.
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General advice warning: This article provides general information only and does not take into account your personal objectives, financial situation or needs. Please seek personalised advice before making any decision about establishing or changing an SMSF.
