This article draws on insights from the 2026 Class Annual Benchmark Report and expert panel discussion held at Class Ignite Conference on 15th September 2026.
Panelists included Class CEO Tim Steele, SMSFA CEO Peter Burgess, Heffron Consulting Managing Director Meg Heffron and Accurium Principal Melanie Dunn and NowInfinity General Manager Kate Anderson.
Key take outs:
- SMSFs remain in growth mode – Record SMSF establishments show strong demand despite regulatory change.
- Younger Australians are driving momentum – Millennials are closing in on Gen X as the largest generational cohort among new Class SMSF members.
- Retirement needs change over time – Many clients transition to different solutions through key life stages.
1. SMSF establishments hit a new record e regulatory change
The SMSF sector continued its strong growth trajectory in FY26, with 52,020 gross establishments in FY26, the highest number on record. This growth occurred despite significant regulatory reform and ongoing debate about the future of the sector.1
According to ATO data, more than 680,000 SMSFs were operating as at 30 June 2026, with around 1.25 million members.2
During the panel discussion, CEO of the SMSF Association Peter Burgess, said the sustained growth reflected changing attitudes towards superannuation.
“More and more people, particularly younger Australians, are seeing superannuation as a key part of their wealth creation plans. It’s not something they just look at when they retire.”
NowInfinity General Manager Kate Anderson added that digital establishment tools, online research and specialist SMSF administration services were helping remove barriers to entry.
“Accessibility, digital establishments and specialist administration have come a long way and are making it easier for people to take control of their superannuation.”
2. Millennials are closing in on Gen X in new SMSF establishments
While Gen X remain the largest generational cohort among new Class SMSF establishments, accounting for 45.1%, Millennials were close behind at 44%.3
Together, the two generations represented almost nine in ten newly established funds. Newly established Class funds recorded an average balance of $467,000 in FY25.4
Industry panellists suggested this reflects a broader shift towards engagement with retirement savings at an earlier age.
Heffron Managing Director Meg Heffron noted that younger Australians are increasingly comfortable managing their investments and engaging directly with financial markets.
“They’re showing an interest in how they invest. That’s our next crop of SMSF members.”
3. Rollover data highlights retirement is a journey
One of the most significant new insights in this year’s report was the analysis of rollover activity.
Between FY23 and FY26, Class recorded approximately $14.4 billion in rollovers into Class SMSFs from non-SMSF sources, compared with approximately $5.7 billion in rollovers out to non-SMSF destinations. Industry funds were the largest source of incoming funds, contributing 57.2% of rollover value, while retail funds received the largest share of money leaving the sector.5
The findings also provide important context to SMSF starting balances. Members made an average of 1.5 rollovers and consolidated around $267,000 into their SMSF over the four-year period.
While not directly comparable to the $467,000 average balance of newly established Class funds, the data suggests many trustees are bringing substantial existing retirement savings with them when establishing an SMSF.6
Heffron said rollover data needs to be viewed as part of a broader financial journey. “A small rollover doesn’t necessarily mean a small SMSF. People are consolidating accounts, investing with spouses and bringing additional assets into the structure.”
Similarly, Burgess argued that concerns around low-balance SMSFs are often not supported when the broader picture is considered.
“The narrative that someone rolls over a small amount and that’s all they’ve got in super isn’t supported by the data.”
4. SMSF wind-ups highlight changing retirement needs
The Class Benchmark Report also provides insight into what happens when SMSFs are wound up.
Of the 4,688 Class SMSFs wound up in FY25, 51% recorded no rollover to another superannuation 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% did so to a retail platform fund.7
These findings highlight the different roles superannuation structures may play across a person’s financial life.
5. Regulatory change will require greater engagement and advice
The report highlights the potentially broad impact of Division 296, particularly given the one-off CGT cost-base decisions trustees may need to consider.
As at 30 June 2026, almost 73% of Class SMSFs held a positive unrealised CGT position. Around 8.8% of Class SMSFs had a least one member balance above $3 million, with a further 9.4% in the $2 million to $3 million member balance cohort.8
Panellists agreed the changes extend beyond those immediately captured by the tax.
Accurium Principal Melanie Dunn noted that many more trustees may need to consider the implications than first expected.
“It’s not just the people above $3 million who need to think about these changes. There is a much broader group who could be impacted over time.”
The discussion also highlighted potential impacts from residential property LRBA restrictions and proposed trustee education requirements, reinforcing the importance of advice, data quality and trustee engagement.
1 ATO SMSF Quarterly Statistical Report
2-8 Class 2026 Annual Benchmark Report