Sydney, 15th September 2026 – Leading cloud-based accounting and SMSF administration software provider Class has released its 2026 Annual Benchmark Report, revealing new insights into rollover activity and indicating recent government reforms may have more impact than initially anticipated.
As at 30 June 2026, the number of SMSFs reached a record 680,301 funds and more than $1.107 trillion in assets. During FY26, 52,020 new SMSFs were established, the highest number added within a financial year on record. This growth was achieved against a backdrop of significant regulatory change including the commencement of Division 296, Payday Super and changes to Limited Recourse Borrowing Arrangements (LRBAs).¹
This year, new findings reveal where SMSF rollovers are coming from and going to, highlighting the significant role member choice continues to play in shaping rollover activity across the sector. Between FY23 and FY26, $14.4 billion was rolled into Class SMSFs, around 2.5 times the $5.7 billion rolled out. Industry funds were the largest source of rollover inflows, accounting for 57.2%, while retail funds received 66.7% of rollover outflows.²
Class CEO Tim Steele said flexibility, choice and control are enduring features of SMSFs, with the data clearly demonstrating their important role within a competitive and diverse superannuation system. With SMSFs remaining in place for an average of 18 years in FY25, the data suggests many members continue to value the benefits the structure provides throughout their retirement journey.
“The findings show that different superannuation structures may play a role for members at different stages of life. Access to advice from financial professionals is critical to help clients make those decisions with confidence.”
1. Younger Australians with strong financial foundations drive growth
Gen X (aged 46-60) and Millennials (aged 31-45) continue to drive SMSF establishment activity, accounting for 89.1% of newly established funds in FY26.
The average and median age for all SMSF members was 62 in FY25. For newly established Class funds, the average member age was 47 in FY25 and FY26, while the average fund balances remained strong at $467,000 in FY25.³
2. Member choice shaping rollovers in and out of SMSFs
Industry funds were the largest source of rollovers into SMSFs, contributing 57.2% of total value over the four-year period from FY23-FY26.
The rollover data suggests many members establish SMSFs with significant existing superannuation savings. Between FY23 and FY26, members consolidated an average of $267,000 through 1.5 rollovers, while newly established Class funds recorded an average balance of $467,000 in FY25.⁴
Meanwhile retail funds received 66.7% of rollover out value from SMSFs, with retail platforms often the preferred destination from members exiting the SMSF sector. This reinforces the ongoing importance of member choice and access to professional advice, to ensure individuals can choose the solution best aligned to their goals at each life stage.
Analysis of the 4,688 Class SMSFs wound up in FY25 found that more than half (51%) did not rollover to another superannuation fund, suggesting closures may be linked to members exiting the superannuation system through retirement, death benefit payments or other benefit withdrawals.
Meanwhile, among the wound up SMSFs that did transfer assets to another superannuation fund, retail platforms were the preferred destination, receiving 41.6% of wind-up rollovers.
3. New SMSFs drove the establishment of almost one in three residential LRBAs
Residential property continues to dominate SMSF borrowing activity, with new research revealing the extent of LRBA usage across the sector well before the Government announced restrictions to residential LRBAs in June this year.
In FY25, residential property represented 92.7% of Class SMSF LRBA holdings. The research found 3,672 new residential property LRBAs were established in FY25, up 46.8% from FY23, with almost one in three in newly established SMSFs and two-thirds from existing SMSFs.
Based on Class data, an estimated 11,500 new residential property LRBAs were established across the SMSF sector in FY25, compared with the ATO’s updated estimate of around 8,700 in FY24. These findings indicate that residential LRBA activity was higher than earlier estimates, meaning the legislated changes could have wider implications for industry providers supporting residential SMSF borrowers.⁵
4. Division 296’s reach extends beyond current members
The Benchmark Report found that 72.8% of Class SMSFs have a positive net unrealised Capital Gains Tax (CGT) position as of 30 June 2026. Among SMSFs with at least one member balance above $3 million, the proportion with a positive net unrealised CGT position rises to 95.4%.⁶
This is particularly relevant under Division 296 transitional CGT adjustment, which places greater focus on calculating unrealised capital gains and obtaining valuations for unlisted investments, including property.
The findings also suggest much of the impact is yet to be felt, with 8.8% of Class SMSFs with a member balance above the $3m threshold and a further 9.4% with member balances between $2m and $3m, creating a significant emerging cohort that may likely be affected in the future.
These changes reinforce the important role financial professionals play in helping clients navigate increasingly complex requirements including asset valuations, tracking dual cost bases, record-keeping and liquidity management.
For a full copy of the Class 2026 Annual Benchmark Report, please visit here.
¹ ATO SMSF Quarterly Statistical Report
² Rollover-in and rollover-out excludes transfers between SMSFs
³ ATO SMSF: A statistical overview 2023-24 (updated on 10th December 2025)
⁴ Member-based averages combine multiple rollover transactions made by the same member. Transaction-based averages measure each rollover separately.
⁵ Class’s FY25 estimate extrapolates identified holdings using its SMSF market share. ATO figures relate to FY24 LRBAs. Data limitation: LRBA figures reflect data as recorded and have not been corrected or normalised. They may not represent each fund’s underlying legal or economic position.
⁶ ATO Self-managed super funds: Annual statistics overview 2016-17 infographics
For media inquiries contact:
Fiona Harris
Mob: 0466 012 434
Email: fharris@hub24.com.au
About HUB24
HUB24 Limited is listed on the Australian Securities Exchange, and includes the award-winning HUB24 Platform, Class, NowInfinity and myprosperity.
The HUB24 Platform offers advisers and their clients a comprehensive range of investment options, including market-leading managed portfolio solutions, and enhanced transaction and reporting functionality. As one of the fastest growing platforms in the market, the platform is recognised for providing choice and innovative product solutions that create value for advisers and their clients.
Class is a pioneer in cloud-based wealth accounting software and is recognised as one of Australia’s most innovative technology companies. Class delivers SMSF administration, trust accounting, portfolio management, legal documentation and corporate compliance solutions to financial professionals across Australia who depend on Class to drive business automation, increase profitability and deliver better client service.
myprosperity is a leading provider of client portals for accountants and financial advisers, enabling streamlined service delivery, increased productivity and enhanced customer experience for finance professionals and their clients. For further information, please visit www.HUB24.com.au
Disclaimer
The information contained in this document is provided by Class Pty Limited (ABN 70 116 802 058) and its subsidiaries (collectively, Class) and is current as at 15 September 2026. It is factual information only and is not intended to be financial product advice, legal advice or tax advice, and should not be relied upon as such. This information is general in nature and may omit detail that could be significant to your particular circumstances. This information is provided in good faith and derived from sources believed to be accurate and current at the date of publication. The information given in this document is in summary form and does not purport to be complete. While reasonable care has been taken to ensure the information is correct at the time of publishing, superannuation and tax legislation and circumstances can change from time to time. Accordingly, neither Class nor any of its related bodies corporate make any representations or warranties as to the completeness or accuracy of the information in this document and none of these entities is liable for any loss arising from reliance on this information, including reliance on information that is no longer current. We recommend that you seek appropriate professional advice before making any financial decisions. Links to third-party websites are inserted for your convenience, but do not constitute endorsement of material on those sites or the relevant providers.
