Exclusive analysis reveals record growth in new SMSFs in Q1FY26, increased advice opportunity and stronger demand for ETFs.
Sydney, 18 February 2026 – Leading cloud-based accounting and SMSF administration software provider Class, has released updated Benchmark Report data, featuring new insights on recent SMSF establishments and highlighting record quarterly fund establishments.
New analysis of Australian Taxation Office data shows Q1FY26 SMSF establishments were the highest on record since tracking began in 2012, with nearly 14,500 new funds, up 33.4% on Q1FY25.1
This quarterly trend is consistent with FY25 annual growth of 6.5% (42,000 funds), making it the strongest year for SMSF establishments since FY17.2
This has been achieved in the context of regulatory uncertainty, with SMSFs now accounting for over $1.07 trillion (24%) of the $4.47 trillion superannuation industry.2
Speaking at the SMSFA National Conference in Adelaide, Class, NowInfinity and myprosperity CEO Tim Steele said the new data indicates SMSFs are becoming more accessible for younger demographics with modest account balances.
“The SMSF sector continues to thrive, gaining momentum among Millennials and Gen X as a key growth opportunity, while also attracting emerging interest from Gen Z and Alpha. This is despite the proposed Division 296 tax implications and a broader industry discussion around super regulation.”
New SMSF trustees tend to be midcareer and lower balance
New insights from the Class data show Millennials (30-44) and Gen X (45-59) are extending their dominance in new SMSF establishments, with their combined share rising to 90.3% over the past six months, up from 87% at 1HFY25. Generation Z (13-29) and Alpha (0-16) are beginning to appear in new fund establishments data, accounting for 1.7% in 1HFY26.3
These trends have led to a younger member base, with new trustees averaging 47 years of age, compared with 61 years for existing funds.3
The demographic change is also reflected in average account balances, which have decreased by 12.7% from $537,000 in FY24 to $469,000 in FY25, corresponding with a shift toward a younger member base. The gender distribution remains stable, with men accounting for 55.1% of members.3
Newly established SMSFs are less likely to access financial advice than existing funds
New analysis shows that four out of five newly established SMSFs (80%) are set up without receiving financial advice. This is higher than across the total Class SMSF population, where the proportion accessing financial advice increased to 26.8% in FY24, up from 26.0%.3
Industry-wide, the number of unadvised SMSFs rose to around 483,000 in 2024, while adviser numbers fell from 15,622 in 2023 to 15,477. Meanwhile, the demand for advice remains strong, with 34% of unadvised trustees planning to seek advice (up from 25% last year). This creates a clear opportunity for advisers to support the changing needs of SMSF trustees throughout their life stages given the average SMSF on Class has been established for 15.6 years.5,6
New SMSFs lean more heavily into direct property and are earlier adopters of ETFs
Newly established SMSFs show a modestly higher allocation to direct property, at 23.3% of assets compared with 21.1% for existing funds, suggesting an early preference for tangible, long-term assets.3
Unlike existing SMSFs on Class, ETFs feature in the top five asset allocations for newly established SMSFs, with 18.2% holding ETFs despite allocations averaging just 7.7% of assets. This trend reflects the growing demand for ETFs, driven by their lower costs, diversification and transparency.3
Newly established SMSFs continue to hold high levels of cash reflecting the time trustees typically need to put their investment strategies in action. Cash and term deposits account for 35.9% of assets, ahead of direct property (23.3%) and Australian equities (10.7%).3
The eastern states account for the largest share of newly established SMSFs
The majority (82.8%) of new Class SMSFs in FY25 were established in the eastern states of NSW, Queensland and Victoria. NSW accounted for 41.3% of newly established SMSFs in FY25 whilst representing 31.1% of Australia’s population.3
Higher SMSF establishment in NSW is likely attributable to higher incomes while recent changes to Victoria’s property related tax have increased the cost and complexity of holding rental property, reducing its appeal for investors.
Recent changes to the proposed Division 296 tax suggest it may affect fewer SMSFs than first expected, easing some SMSF trustee concerns. However, the risk of higher taxes may still prompt investors to reduce exposure to higher cost property markets, particularly in states with less favourable land tax settings.
1. ATO SMSF Quarterly Statistical Report September 2025
2. ATO SMSF Quarterly Statistical Report June 2025.
3. Class Annual Benchmark Report Half Year Findings – in the six months to 31 December 2025.
4. Advice analysis is based on FY24 Class general ledger data as most complete dataset available.
5. Vanguard Investments Australia Ltd media release 28 May 2025 – New SMSF trustees propel uptake of financial advice, but $1 trillion sector still has significant advice gaps.
6. Class 2025 Annual Benchmark Report.
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Fiona Harris
Senior Manager, Media & Public Relations
fharris@hub24.com.au
Mob: 0466 012 434
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 18 February 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.