What does 2026 look like in the SMSF sector?
Continued growth in the sector fueled by younger trustees looking at alternative investments are on the cards according to our experts.
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Peter Burgess, CEO, SMSF Association
The sector will continue to grow strongly, surpassing 700,000 funds by 31 December 2026.
Liam Shorte, director, SONAS Wealth
The rise of the new 35-45-year-old SMSF trustee will continue as they have 15-25 years of contributions now and their super is their largest asset other than a debt-laden home. They want a say in managing that nest egg.
The issue for us as professionals is to ensure they understand all their options and that only those that are suitable to have an SMSF actually set one up and that we provide suitable alternatives for the others that still give them the level of control and flexibility that they seek.
They will all benefit from engaging with their super and getting confidence to make extra contributions earlier as the compound growth on a higher balance will lead to a more comfortable and possibly earlier retirement which is the main objective of many I speak to. They may not want to fully retire early but they do want to be in control of that decision, which means being financially comfortable.
David Busoli, principal, SMSF Alliance
With the Div 296 start date set for 1 July 2026 and first measurement date 30 June 2027, many trustees will reposition ahead of that time by realising gains earlier, adjusting contributions/withdrawals strategy and reviewing fund structures.
I also expect more flagged trustee-related dealings, and more demand for external valuations and documentation. Essentially a more proactive, compliant approach by service providers and trustees alike.
Meg Heffron, director, Heffron
Ever increasing regulatory scrutiny – but I don’t necessarily predict a clamp down, just grumbling. ASIC’s report 824 has been widely (mis) interpreted as a broad statement about SMSF advice being poor across the board. In fact, it was a targeted review of advice files ASIC expected to be bad.
Not surprisingly, they found their risk indicators were sound: they did find a high incidence of advice to be concerned about in a pool where they expected to find it. We should actually be pleased about this – it suggests ASIC is competent in knowing where to look for bad actors. Unfortunately we’ve not heard as much about the fact that ASIC also found a number of the advice files they reviewed indicated good advice and sound recommendations to set up an SMSF.
Scams, product failures and illegal early access to super remain topical issues and whilst they’re actually only relevant for a small number of SMSFs in a very large population, they still take up a disproportionate amount of attention and deflect from the broader truth about the sector : most funds are compliant and allowing their members to do a great job in saving for retirement.
Naz Randeria, director, Reliance Auditing Services
Looking ahead to 2026, I expect the SMSF sector to grow even stronger. Engagement will rise as more Australians take a deeper interest in controlling their retirement outcomes, especially after the debates of this year.
I also anticipate continued scrutiny of wealth-based taxation, meaning trustees will be far more proactive about planning, structuring, and documenting their strategies. And despite the policy noise, I believe this sector will forge ahead demonstrating through its strength, resilience, and performance that the policymakers pushing these measures have underestimated the determination and capability of Australians who choose to be self-funded. SMSFs will continue to stand for independence, flexibility, and long-term control in Australia’s retirement landscape.
Shelley Banton, director, Super Clarity
After a busy 2025 year of finalising NALI, focusing on market valuations, amending the Div 296 legislation, relaxed commutation rules for legacy pensions, introducing new guidance on death benefits and ratifying the payday super legislation, finalisation of the Div 296 legislation would be welcomed to provide certainty to the sector, and then have some breathing space to implement the new rules.
The ATO has stated in its 2025-26 corporate plan that it will continue to focus on the large number of outstanding annual returns, which are an indicator of illegal early release activity, as well as compliance with release and commutation authorities.
As part of its fraud prevention campaign, the ATO will continue to work towards staying ahead of emerging threats as activity in this area becomes more sophisticated. It will also tighten controls for SMSF trustees who access super early through SMSF registration, educational guidance and early intervention.
We will also see more SMSF trustees move into non-mainstream assets such as cryptocurrency, private equity and venture capital, debt instruments and ETFs, to name a few.
Trustees are looking at these types of investments through a different lens, as interest rates remain subdued, new investment opportunities become available, and the digital asset industry continues to mature.
In addition, Millennials are the fastest-growing group within the newly established SMSF cohort. As both Millennials and members of Generation Z find themselves increasingly locked out of the property market, they are looking to alternative investment options.
As their understanding of super increases, the opportunity to maximise wealth through avenues beyond property will lead to longer-term growth from a broader range of opportunities
Nicholas Ali, head of SMSF technical services, Neo Super
Predictions for the SMSF sector in 2026 include a surge in strategic property purchases, increased use of digital tools and automation for fund management, and a growing demographic of younger trustees seeking transparency and flexibility. Additionally, there is an expectation of rising interest in alternative investments, such as cryptocurrency and infrastructure assets, as trustees adapt to changing market conditions.
Keeli Cambourne
January 9, 2026
smsfadviser.com
January 9, 2026
smsfadviser.com