SMSF Sector Hits Historic $1 Trillion Milestone – What’s Driving the Boom?

The self-managed super fund (SMSF) sector has achieved a record-breaking milestone, with total assets invested surpassing $1 trillion in 2024. 

This landmark achievement was announced at the 2025 SMSF Association National Conference in Melbourne, signalling a new era of growth for the industry.

Why Are SMSFs Thriving? 

Peter Burgess, Chief Executive of the SMSF Association, outlined three key reasons behind the sector’s unprecedented expansion:

1. Booming Interest from Younger Investors – More young Australians are turning to SMSFs, drawn by the promise of greater financial control and tailored investment strategies.
2. Wealth Transfer on the Rise – The generational shift of wealth from baby boomers to younger family members is significantly boosting SMSF asset values.
3. Delay of Division 296 Tax – The proposed Division 296 tax, which seeks to impose an additional 15% levy on super balances exceeding $3 million, has yet to be enacted, providing temporary relief for high-net-worth investors.

What’s Next? The Uncertainty Around Division 296 Tax

Introduced to Parliament on 30 November 2023, the Division 296 Bill could impose a significant additional tax burden on Australians with large superannuation balances. If passed, it may lead to fundamental shifts in SMSF investment strategies. However, with the legislation still in limbo, the sector continues its upward trajectory without immediate constraints.

The Future of SMSFs – Opportunities and Challenges Ahead

This $1 trillion milestone highlights the increasing popularity of SMSFs among Australians who want more control over their financial futures. With younger investors joining the sector and wealth transfers accelerating, SMSFs are set for sustained growth.

While the SMSF sector is primed for further growth in 2025 and beyond, it must be noted that one of the main combatants to this growth seems to be the Australian government.

When over 600,000 SMSFs have been established in Australia, made up of over 1 million members, and the Australian government is going out of its way to stunt the growth of the industry, we all have to ask ourselves one simple question: 

If SMSFs are proving to be so successful, why is the government so against their growth? 

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