What the numbers actually say
The ATO's March 2026 quarterly statistical report landed with a headline that stopped a lot of people mid-scroll. As of March 2026, there are now 672,805 SMSFs and 1,239,977 members, up from 661,776 SMSFs and 1,220,976 members in December 2025. That is a sector that has grown substantially in a short time.
The ATO statistics for March 2026 showed that total SMSF net assets have reached $1,017.73 billion (approximately $1.02 trillion), essentially flat on the December 2025 quarter ($1,017.40 billion) and up from $950.78 billion a year earlier. So the asset base held firm even as the number of funds kept climbing.
The growth in fund numbers has been the more striking story. Net establishments (new funds less wind-ups) for the March 2026 quarter reached 11,029, the strongest March quarter on record, and by a wide margin. For context, the December 2025 quarter set a Q4 record at 11,646 net establishments, and commentators noted that the last several quarters have consistently run well above the 10,000 net mark, a level the sector had never previously sustained.
In March 2025, there were 633,920 SMSFs and 1,169,025 members, meaning that in the past 12 months the sector has added 38,885 funds (6.1 per cent) and 70,952 members (6.1 per cent). That is not a blip.
Why more Australians are looking at an SMSF
Several things are happening at once. Super balances are maturing. On average, SMSFs had assets of $1.63 million in 2023-24, up 29 per cent over the five years to 30 June 2024. A fund that size makes the fixed running costs of an SMSF far easier to absorb. The data also indicates a demographic shift, with individuals aged 35-44 making up a significant percentage of new entrants. The 40-something professional with a meaningful super balance but 20-plus years until retirement is now a core SMSF demographic, not just the retiree crowd.
What draws many of them is the ability to hold direct property inside the fund. Property remains a popular allocation. The ATO data shows non-residential real estate at $105 billion and residential property at $57 billion continuing to be popular SMSF asset choices.
Contribution caps are also worth understanding before anyone sets up a fund. The general concessional contributions cap for 2025-26 is $30,000. From 1 July 2026, the general concessional contributions cap rises to $32,500 as a result of indexation in line with average weekly ordinary time earnings (AWOTE), per the ATO. If your total superannuation balance was below $500,000 at 30 June of the previous financial year, you may be able to contribute more than the general cap by carrying forward unused cap amounts from up to five previous financial years. These are the sorts of levers that an SMSF specialist accountant can help you map out for your situation.
The rule that changed everything for residential property borrowing
If you have been researching SMSF property, you need to understand what changed on 10 August 2026.
Limited recourse borrowing arrangements (LRBAs) are not banned. SMSFs can still borrow or maintain a borrowing under an LRBA to acquire an asset. However, the changes restrict real property assets to business real property. In plain terms: new residential LRBAs inside an SMSF are no longer available, per the ATO.
For funds that already had a residential LRBA in place, current residential LRBAs remain unaffected and can run to natural completion.
Commercial property and share or unit parcels can still obtain finance under an LRBA, but only where the property satisfies the SIS Act definition of business real property. This will generally include commercial premises used wholly and exclusively in a business, but not all non-residential property will automatically qualify.
For residential property specifically, residential property can still be purchased using cash reserves of the SMSF only, so for clients who are cashed up and able to buy without borrowings, the change in laws will have no real effect.
Beyond outright cash purchase, there is another structure for those who want to hold a residential property in a super-linked entity with borrowing: the SMSF and unit trust model. In this arrangement, the SMSF invests into a unit trust, and the borrowing sits inside the trust rather than inside the fund itself. Unlike an LRBA, this structure can also support construction. Whether this suits a given situation depends heavily on individual fund size, trust deed rules, and lender appetite, so it requires proper advice from an SMSF specialist accountant and a broker experienced in this area.
A worked scenario to make the numbers concrete
Consider a couple, both 47, with a combined SMSF balance of $650,000 in accumulation phase. They are wondering what an SMSF property actually looks like financially.
Inside the fund in accumulation phase:
- Rental income is taxed at 15%, not at their personal marginal rate (which may be 39% or higher including Medicare levy).
- If the property is eventually sold after being held more than 12 months, the effective capital gains tax rate inside the fund is 10% (the one-third CGT discount applies within super in accumulation phase).
- If they later move the fund into pension phase, income and capital gains on assets supporting pension payments are taxed at 0%, up to the Transfer Balance Cap. Per the ATO, the general transfer balance cap is $2 million from 2025-26 and rises to $2.1 million from 2026-27.
What this means practically: A residential property purchased outright for, say, $550,000 (leaving $100,000 liquidity in the fund) would generate a rental income stream taxed at 15% in accumulation. The fund would need to cover all costs, including rates, insurance, property management, and any maintenance, from its own cash or rental income. There is no external borrowing available for new residential property after 10 August 2026. The fund's liquidity position matters enormously.
This is an illustrative scenario only. It does not account for individual fund rules, lender terms, trustee obligations under the SIS Act, or personal tax circumstances. Those details are the job of an SMSF specialist accountant and licensed financial adviser.
What to look into next
If the SMSF property statistics have you thinking seriously, here are three practical starting points:
Check whether an SMSF makes sense for your balance. The consensus guidance across the industry is that a fund needs enough assets to make the annual running costs proportionate. An SMSF specialist accountant can model that for your specific balance and contribution rate.
Understand which property structure fits your situation. Direct cash purchase inside the fund, the unit trust and SMSF model, or commercial property via an LRBA are different paths with different rules, deposit requirements, and lender pools. A broker who works regularly with SMSF lending can walk you through what is currently available and what lenders require.
Map out your contributions strategy. With the concessional cap at $30,000 for 2025-26 and rising to $32,500 from 1 July 2026 per the ATO, and carry-forward rules available if your balance is under $500,000, there may be opportunities to build your fund balance faster. That conversation belongs with a licensed financial adviser or SMSF accountant.
For general information on how EWC sources and coordinates SMSF and investment properties, including how our HomePay construction option works (zero monthly payments for the first 12 months during construction, then standard repayments), visit /services or book a free call to talk through your situation.
More reading on how SMSF property structures work is available at /insights.
General information only, not personal financial advice. Speak with a licensed adviser before acting.