SMSF statistics: 1.1 million members with $747bn in super

Self-managed super funds (SMSFs) in Australia are privately run super funds that can currently have between one and four members (who must also be trustees of their fund). The government has proposed to allow SMSFs to have up to six members from 1 July 2019, but this is not yet legislated.

According to the ATO, the majority of SMSFs in Australia (70%) have two members, followed by 23% with just a single member.

How many SMSFs are there in Australia?

The latest available ATO figures indicate that there were 598,429 SMSFs in Australia in March 2019. This is an increase of approximately 2% on March 2018 figures, which is slower than the rate of growth in previous years.

The table below highlights that the number of SMSF wind-ups increased by nearly 20% in the 2017/18 financial year, and the number of newly established funds decreased by 17%. However, overall the number of SMSFs is still steadily increasing.

Financial year	Establishments	Wind-ups	Total number of SMSFs	Total members of SMSFs
2013/14	33,358	12,654	521,467	987,452
2014/15	33,782	13,032	542,217	1,026,496
2015/16	32,861	12,350	562,728	1,060,270
2016/17	30,517	13,470	579,775	1,092,723
2017/18	25,457	20,430	584,802	1,102,730

Source: Australian Taxation Office

As at March 2019 the nearly 600,000 SMSFs in Australia have a combined total of 1,129,542 members. Although this represents less than 5% of Australia’s population, they account for $747 billion, or about 27% of the $2.7 trillion invested in superannuation. This is significantly more than the $678 billion in industry funds (i.e. those run by industry bodies) and the $623 billion invested in retail funds (i.e. those run by financial institutions).

What is the average SMSF balance?

The average account balance of individual SMSF members has been steadily increasing in recent years, as indicated in the first row of the table below. Bearing in mind that the majority of SMSFs in Australia have two members, the average combined balance of SMSF fund members is provided in the second row of the table. These are the latest figures available.

	2013/14	2014/15	2015/16	2016/17
Average individual SMSF member balance	$544,858	$572,509	$587,171	$652,465
Average combined member SMSF balance	$1,031,385	$$1,081,964	$1,107,726	$1,223,460

Source: Australian Taxation Office

ATO figures further reveal that the average assets per member in the establishment year of an SMSF was $320,000 in 2016/2017. This is consistent with the generally held view that the cost of setting up and running an SMSF may be prohibitive for members in funds with lower balances.

The vast majority (82%) of SMSFs in Australia have balances greater than $200,000, as indicated in the table below.

SMSF asset balance	Percentage of total funds
Under $50k	5.5%
$50k – $100k	3.2%
$100k – $200k	7.7%
$200k – $500k	22.8%
$500k – $1m	24.8%
$1m – $2m	20.0%
$2m – $5m	12.6%
$5m – $10m	2.6%
More than $10m	0.7%

Source: Australian Taxation Office

How long has the average SMSF been operating?

More than half (53%) of the SMSFs in Australia have been operating for more than ten years, as highlighted in the following table.

Operating time	Percentage of SMSFs
Less than 1 year	4.8%
1-2 years	5.3%
2-3 years	5.5%
3-5 years	11.3%
5-10 years	19.7%
More than 10 years	53.1%

Source: Australian Taxation Office

SMSF member age distribution

Perhaps surprisingly, the age ranges of SMSF members are fairly evenly spread between the ages of 35 and 84, as indicated in the table below, but there is a concentration between the ages of 55 and 69.

Age bracket	Total members (%)
Under 25	0.5%
25-34	3.4%
35-44	11.8%
45-49	10.4%
50-54	11.5%
55-59	13.5%
60-64	13.4%
65-69	13.3%
70-74	11.4%
75-84	9.3%
85+	1.5%

Source: Australian Taxation Office

SMSF trustee structures

According to the most recent statistics from the ATO, approximately 57% of all SMSFs have corporate trustees. This structure is becoming increasingly popular. Since 2015, more than 80% of SMSFs have been set up with corporate trustees. Learn about the difference between corporate and individual trustees.

SMSF phases

A majority of all the SMSFs in Australia (58%) were solely in the accumulation phase (i.e. solely accepting contributions by or on behalf of members), while the remaining 47% of funds were either partially (11%) or fully (31%) in the retirement phase (formerly called the pension phase).

Learn more about the type of people that have SMSFs.

The bottom line

The number of SMSFs in Australia has continued to rise in recent years, along with average individual member and overall fund balances. The majority of SMSFs have been operating for more than ten years and have corporate trustees, with this structure becoming very popular since 2015. Two-member SMSFs are the most common type. SMSFs are increasingly moving from solely being in the accumulation phase to the retirement/pension phase, reflecting Australia’s ageing population trend.

You should seek independent professional advice based on your individual financial circumstances if you are considering setting up an SMSF. The information contained in this article is general in nature.