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Professionals Guide FY2027 The SMSF Alternative Asset Playbook: Insights for Modern Advisers A framework for evaluating emerging and non‑traditional SMSF investments.

CMC Invest

AMP

Independent Reserve

Technology

Foreword

Professionals guide FY2027

Legislative change and the new SMSF investment landscape

Australia’s self managed superannuation fund sector continues to evolve under a steady stream of legislative and regulatory adjustments.

and indexation, increased scrutiny on valuations and most recently changes to the limited recourse borrowing arrangements.

While many of these changes aim to strengthen system integrity, improve transparency, or align superannuation with broader economic policy, they also have direct and sometimes significant implications for SMSF investment strategies.

Each of these reforms affects investment choices differently, but together they are pushing trustees toward more deliberate, evidence based portfolio construction.

Understanding how these reforms interact and how they influence trustee behaviour is now essential to guiding clients through an increasingly complex environment. The shifting regulatory environment

Keeli Cambourne

SMSF Adviser Reporter

The past two years has seen a flurry of legislative and regulatory changes to the SMSF landscape, most of which have hit the sector concurrently including Division 296 tax, the strengthening of rules around non-arms’ length expenditure and income, changes to contribution caps

Division 296: A tax on high balances

For the past three years the SMSF sector had been on tenterhooks awaiting the passage of the controversial Division 296 tax which introduces a 15 per cent tax on individuals with total super balances over $ 3million and further tax impost for those with balances over $10 million. Although there were last minute changes to the legislation, most importantly taking out the tax on unrealised gains, Division 296 marks one of the most consequential changes to SMSF taxation in decades. For SMSF trustees the new tax alters the after tax return profile of high growth and illiquid assets including the

Foreword

Professionals guide FY2027

attractiveness of concentrated growth assets such as unlisted property, private equity, or high volatility equities which may now deliver diminished after tax returns for members above the threshold. The Division 296 legislation has also brought greater focus on liquidity and valuation accuracy and has meant that modelling the long term impact of the law is now a critical part of strategic planning, especially for clients approaching the $3 million threshold. NALE reforms: Tightening the rules on arm’s length dealings

The ATO’s ongoing focus on non arm’s length income (NALI) and non arm’s length expenses (NALE) has created heightened compliance pressure for SMSFs. Although the government has moved to limit the scope of NALE rules for general expenses, the framework remains complex. There are several ways the regulations may impact investment choices Image: Summit Art Creations/Shutterstock.com

Foreword

Professionals guide FY2027

including a reduced willingness to use related party arrangements as trustees become increasingly cautious about related party loans, services, or asset transfers due to the risk of punitive tax outcomes.

for more than $500 – including artwork, jewellery, rare coins, first-edition books and vintage cards – are treated as CGT assets. Personal use assets above $10,000 are also captured.

The NALE reforms reinforce the importance of robust documentation and independent valuation—factors that directly influence investment selection and have strengthened the preference for clean, third-party transactions. Capital gains: Resetting the bar

While recent Federal Budget and legislative changes have overhauled CGT for individuals, trusts, and property, SMSF investments remain largely exempt from these changes. Under the proposed reforms, all CGT assets held on 30 June 2027 will require a market value to be established as a starting point for the new tax rules. In existing tax law, collectibles purchased

The reforms introduce a new requirement: all such assets will need a defensible market valuation on 30 June 2027. There are important considerations for high-balance SMSFs. If a fund holds massive amounts of capital and crosses the threshold of the Division 296 tax, earnings, including realised capital gains, may face an additional 15 per cent tax. [1] Additionally, the changes will allow funds a cost-base reset for high balances. To assist with the implementation of the Division 296 tax, funds may have an opportunity to reset the cost base of eligible ETF assets to market value. This allows funds to lock in unrealized gains under the previous rules before the Division 296 threshold takes effect.

Contribution cap indexation and strategic allocation

The indexation of the concessional and non concessional contribution caps, along with the transfer balance cap, has opened new opportunities for SMSF members to boost retirement savings. However, these changes also influence investment strategy. The higher caps will give more capacity for long term growth assets allowing trustees to contribute more capital earlier, supporting strategies that favour long term compounding. They also allow for greater flexibility for rebalancing and with increased contribution room trustees can correct portfolio imbalances without triggering excessive tax consequences. Importantly, they can also enhance estate planning strategies as higher caps can support multi generational wealth transfer strategies, influencing asset selection and structuring.

Foreword

THE EXPANSION OF TRANSFER BALANCE ACCOUNT REPORTING (TBAR) AND REAL TIME REPORTING OBLIGATIONS IS DRIVING A MORE PROFESSIONAL APPROACH TO SMSF ADMINISTRATION WHICH CAN ALSO HAVE AN IMPACT ON INVESTMENT CHOICES

Professionals guide FY2027

LRBAs and property investment under pressure

Limited recourse borrowing arrangements (LRBAs) remain a popular SMSF strategy, particularly for direct property investment. However, regulatory scrutiny continues to intensify. In June the Government announced new legislation which bans SMSFs from using LRBAs in the purchase of residential property. However, there is still uncertainty around the nuances of the rules in regard to the exact definition of properties in which an LRBA can be utilised. The impact on investment choices in light of the new rules will mean more conservative gearing strategies and trustees are potentially more likely to opt for lower loan to value ratios to reduce compliance risk. It could also see a shift toward diversified property exposure with some SMSFs moving from direct property to property trusts or ETFs to maintain exposure without the regulatory burden.

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With rising interest rates and tighter lending conditions, and a heightened focus on cash flow stability trustees will need to reassess the sustainability of geared property investments and advisers will need to balance client demand for property exposure with the compliance and liquidity risks inherent in LRBAs. Enhanced reporting and the push toward professionalisation

The expansion of transfer balance account reporting (TBAR) and real time reporting obligations is driving a more professional approach to SMSF administration which can also have an impact on investment choices. For instance, trustees may favour assets with transparent, frequent valuations such as listed assets or managed funds with regular pricing to simplify reporting. Consequently, there could also be a shift away from complex, opaque structures that require bespoke valuation methodologies. Overall, the compliance burden will see a greater reliance on advisers and administrators.

Foreword

Section Heading

The broader policy direction: What it signals for SMSF investment

The raft of legislative changes will undoubtedly have a significant impact on the choices SMSF trustees make in regard to their investment strategies. With an emphasis on liquidity, there will likely be a review of portfolio diversification away from more illiquid assets. Combined with the increasing tax progressivity within the super system, trustees will look for ways to keep balances below the trigger thresholds of $3 million and $10 million and may consider moving money out of the superannuation environment into more tax friendly structures.

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Strengthening compliance and governance standards and the need for more transparency and valuation accuracy could also push investment towards assets which offer simplicity in maintaining the strict compliance obligations.

For SMSF advisers, this means guiding clients toward portfolios that are more diversified, have more liquidity, easier with which to maintain compliance but are also aligned with long term, after tax outcomes. Conclusion

Legislative change is reshaping the SMSF sector in ways that directly influence investment choices. While the system remains flexible and attractive for engaged investors, the margin for error is narrowing. Trustees must now navigate a landscape where tax outcomes, valuation accuracy, and compliance considerations are as important as investment performance. For advisers, the opportunity lies in helping clients to adapt by building resilient, well documented, and forward looking investment strategies that reflect both the regulatory environment and the client’s long term goals.

CMC Invest

The new shape of SMSF diversification

For decades, SMSF portfolios have been dominated by Australian shares, particularly in the banking and mining sectors, alongside property and cash. That core remains intact, but the ETF side of SMSF portfolios is undergoing meaningful change.

crypto ETFs round out the remainder.

As of June 2026, ETFs accounted for roughly one third of total SMSF holdings on the CMC Invest platform, with individual stocks making up the remaining two thirds. The stock portion remains heavily concentrated in names such as CBA, BHP, NAB and WBC. But the ETF portion tells a different story as trustees are using ETFs to diversify beyond domestic stock concentration and access broader global markets.

Andrew Rogers, Managing Director and Head of Stockbroking at CMC Invest, said that one of the clearest trends has been growing interest in gold.

Over the past 12 months, CMC Invest SMSF clients have responded to a changing investment landscape by broadening their ETF exposures beyond traditional share market allocations.

“PMGOLD ranked as the seventh most traded ETF overall, making it one of the most popular non-equity exposures among CMC Invest SMSF clients. This suggests many trustees are looking to gold as a portfolio diversifier amid ongoing geopolitical uncertainty and market volatility,” Rogers said. “Our SMSF trading data also shows growing interest in structural themes such as artificial intelligence and electrification. SEMI, which provides exposure to the semiconductor companies supporting AI and

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International equity ETFs now represent 45–50% of assets held by CMC Invest’s SMSF clients, led by exposures such as IVV, VGS, VTS, NDQ and IOO. Australian equity ETFs account for 25–30%, followed by gold and commodity ETFs at 5–6%, and cash and fixed-income ETFs sit around 5%. Multi-asset, tactical, and

CMC Invest

The new shape of SMSF diversification

AT CMC INVEST, ETFS ARE TRADED IN THE SAME WAY AS SHARES, SO BROKERAGE RATES ARE THE SAME AS FOR ANY LISTED STOCK Andrew Rogers

Managing Director and Head of Stockbroking at CMC Invest

advanced computing, ranked as the 19th most traded ETF overall, while WIRE, which offers exposure to copper miners benefiting from electrification and energy infrastructure investment, ranked 22nd overall,” he added.

Liquidity, costs and hidden frictions in alternative ETFs

Investors should be aware of several indirect costs that can vary between ETFs.

He continued, “While thematic ETFs are attracting growing interest, broad market exposures continued to dominate portfolio holdings, with VAS ranked first overall, followed by NDQ in second, IVV in third and VGS in fourth. The popularity of thematic ETFs nevertheless suggests CMC Invest SMSF clients are increasingly seeking targeted exposure to some of the major structural trends shaping the global economy.”

First, bid-offer spreads, which is the difference between the buy and sell price of an ETF, can be an important indirect cost, particularly for less liquid ETFs or ETFs that hold securities listed in markets that are closed during Australian trading hours. In these cases, market makers may have less visibility over the current value or liquidity of the underlying holdings and may build in a larger pricing buffer, which can result in wider spreads, especially during periods of market volatility.

“At CMC Invest, ETFs are traded in the same way as shares, so brokerage rates are the same as for any listed stock. There are no additional platform fees simply because an investor is trading an ETF rather than an individual share.”

Investors should also be aware of currency hedging costs. For ETFs that provide hedged exposure to international securities, the cost of maintaining the currency hedge is typically reflected within the fund and can affect overall returns.

CMC Invest

The new shape of SMSF diversification

There are also tracking differences, where an ETF’s performance may differ slightly from its benchmark due to fees, transaction costs and portfolio management factors. Finally, SMSF investors should also take note of portfolio turnover and transaction costs, as these costs are incurred within the fund and may not be immediately visible through the management fee alone. Access and education are key to success There are common risks with investing in ETFs that SMSF investors underestimate. Platforms can support this with more informed investment decisions by providing access to a broader range of investments and helping investors better understand the exposures within each ETF. Rogers said one of the biggest risks SMSF investors can underestimate is concentration risk. While ETFs offer a simple and cost-effective way to Image: Evgeny Atamanenko/Shutterstock.com

CMC Invest

The new shape of SMSF diversification

access markets, owning an ETF does not automatically mean an investor is diversified.

This includes access to ETFs listed on major overseas exchanges such as the US, where larger and more liquid markets can offer exposure to specialised sectors, themes and asset classes that may not be available locally, alongside potentially tighter bid-offer spreads and lower management expense ratios (MERs),” Rogers explained.

“For many Australian investors, the starting point is already a portfolio heavily weighted towards local shares and property. If you’re adding ETFs that provide more exposure to the same market, you may not be improving diversification as much as you think. On the other hand, investors looking offshore can find themselves concentrated in a relatively small number of large US technology companies through popular global ETFs,” he said. “Trading platforms can help in two key ways, access and education. Access is important because building a genuinely diversified portfolio often requires exposure across different asset classes, sectors and global markets.” “At CMC Invest, investors have access to more than 15,000 ETFs across the ASX and 15 international markets, providing a broad range of investment opportunities.

Education is equally important and helping investors understand what sits beneath an ETF, where concentrations can emerge, and how different exposures fit within a broader portfolio can support more informed investment decisions and better diversification outcomes over the long term. Global diversification, currency risk and tax treatment

Global ETFs can be an effective way for SMSF investors to diversify beyond Australia’s relatively concentrated market, but investors should understand both the investment and administrative implications.

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From a currency perspective, it’s important to consider whether you’re comfortable with exchange rate movements affecting returns, or whether a hedged approach may be more appropriate. On the tax side, investors should understand how the ETF is structured, whether foreign withholding taxes apply, and how distributions and capital gains will be treated within the SMSF. These factors may not drive the investment decision, but they can have a meaningful impact on overall outcomes. Product choice and investment decisions

When comparing the most traded ETFs among SMSF and individual investors, CMC Invest has found there is strong overlap at the top of the rankings. Products such as VAS, NDQ and IVV are among the most popular ETFs across both groups, reflecting a shared preference for broad Australian and international equity exposure.

CMC Invest

Beyond these core holdings, CMC Invest has observed some divergence in investor behaviour. SMSF investors show greater representation in incomefocused products, with ETFs such as VHY, AAA and QPON ranking strongly. “Individual investors, meanwhile, appear more active in leveraged and tactical strategies, with products such as TQQQ, SOXL and SQQQ featuring among the most traded international ETFs,” Rogers said. The future of alternatives in SMSF portfolios

CMC Invest data suggests that alternative investments are no longer peripheral in SMSF portfolios. Gold, thematic exposures, commodities, crypto ETFs and multi-asset strategies are becoming part of a more sophisticated diversification toolkit. However, trustees are not abandoning traditional exposures. Broad market ETFs such as VAS, NDQ, IVV and VGS continue

The new shape of SMSF diversification

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Breakdown of CMC Invest SMSF ETF holdings by category Share of total ETF assets held by CMC Invest SMSF clients

Category

Approx. Share of ETF Assets

Example ETFs

ETFs providing exposure 45-50% to international equities

IVV, VGS, VTS, NDQ, IO0, VGAD, VEU

ETFs providing exposure 25-30% to Australian equities

VAS, VHY, A200, IOZ

Gold & Commodity ETFs

5-6%

PMGOLD, GDX, QAU, MNRS

Cash & Fixed Income ETFs

~5%

AAA, VAF, IAF, VGB

Multi-Asset ETFs

~4%

VDHG, VDBA, GHHF, DHHF

Tactical / Geared ETFs

~4%

GEAR, BBUS, BBOZ, BEAR

Crypto ETFS

~2%

EBTC, VBTC, IBTC, IBIT

Source: CMC Invest SMS data, June 2025 to June 2026. Percentages represent the share of ETF assets invested in each category and do not represent total SMSF portfolio allocations.

International equity ETFs now represent 45-50% of assets held by CMC Invest’s SMSF clients, led by exposures such as IVV, VGS, VTS, NDQ and IOO. Australian equity ETFs account for 25-30%, followed by gold and commodity ETFs at 5-6%, and cash and fixed-income ETFs sit around 5%. Multi-asset, tactical, and crypto ETFs round out the remainder.

CMC Invest

The new shape of SMSF diversification

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to dominate trading activity, serving as the foundation upon which alternative allocations are built. The future of SMSF investing will likely be defined by balance, combining core exposures with carefully selected alternatives that reflect long term structural trends, defensive needs and global opportunities. As markets evolve, trustees who understand the role of alternatives and the risks that accompany them will be better positioned to build resilient, forward looking portfolios that support long term retirement outcomes.

Disclaimer:

Image: CMC Invest

investment strategy is suitable for any specific person. Investing in cryptocurrencies carries significant risks and is not suitable for all investors. You may lose all your money you paid. Consequently, you should consider the information in light of your objectives, financial situation and needs and do your own research. It’s important for you to consider the relevant Digital Assets Terms of Service and other associated disclosure documents on the CMC Invest website before you decide whether or not to acquire any of the Cryptocurrencies. Please also note that you are not currently able to send

Cryptocurrencies to or from your trading account, or use Cryptocurrencies purchased on CMC Invest’s Platform to pay for goods or services. The provision of cryptocurrency services and products will not be treated similarly to the provision of regulated financial services or products and you are not afforded the same client protection provisions offered by the Corporations Act 2001 (Cth) as you would trading regulated financial products or receiving regulated financial services. Cryptocurrencies are held with a sub-custodian.

AMP

Access to quality lending solutions remain critical for SMSF trustees, despite budget changes

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Technology transformation in SMSF investing:

How modern platforms are reshaping trustee decision-making

Image: AMP

AMP

Access to quality lending solutions remain critical for SMSF trustees, despite budget changes

remains a core segment because trustees invest over long horizons and need borrowing structures that can adapt as circumstances change.

The property lending market was shaken in June this year when new regulations were introduced by the Government specifically targeting SMSFs, but the new rules don’t alter the position of existing SMSF property investors, Michael Christofides, AMP Bank Director of Lending & Everyday Banking explained. “Existing capital gains and pension phase tax concessions remain in place, and negative gearing arrangements continue to apply for property already held within an SMSF,” he said. “It’s therefore important that trustees continue to have access to quality lending and refinancing options. It’s also why continued participation of established, regulated lenders remains important. It supports competition, choice and ongoing flexibility for SMSF trustees as their needs evolve over the long term.” Even with tighter rules, SMSF lending

SMSF property investments often span 10–25 years and over that period, interest rates shift, rental markets fluctuate, contributions vary, and retirement objectives evolve. Refinancing opportunities and safeguarding member outcomes

Despite the tighter rules, borrowing continues to provide essential leverage, and refinancing optionality has become a key safeguard allowing funds to manage rate cycles, adjust to changing member circumstances and avoid being locked into an increasingly narrow lender market. “The importance of refinancing is often overlooked. Property investments can be held for decades and during that time interest rates change, member circumstances evolve and retirement objectives shift,” Christofides said.

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EXISTING CAPITAL GAINS AND PENSION PHASE TAX CONCESSIONS REMAIN IN PLACE, AND NEGATIVE GEARING ARRANGEMENTS CONTINUE TO APPLY FOR PROPERTY ALREADY HELD WITHIN AN SMSF Michael Christofides

AMP Bank Director of Lending & Everyday Banking

AMP

Access to quality lending solutions remain critical for SMSF trustees, despite budget changes

“Trustees need access to competitive lending options throughout the life of the investment. A healthy market isn’t measured simply by how many people can borrow today. It’s measured by whether trustees still have genuine choice when they need to refinance, restructure or review their arrangements years down the track.”

provide growth and income potential, but it should sit alongside appropriate diversification, liquidity and cash flow management. The most successful retirement strategies are rarely built around a single asset class.”

Diversification and balance are key

Christofides said property remains one of the most widely understood investment assets for Australians and, for many SMSF trustees, can play an important role within a diversified retirement strategy. “Volatility tends to reinforce the importance of fundamentals. SMSF property investing is generally a long-term decision, allowing trustees to look beyond short-term market movements and focus on building wealth and generating income over time,” Christofides said. “The key is balance. Property can

As regulations tighten and SMSF trustees look to different structures in which to build their wealth from trusts to companies, Christofides explained that decisions about how to hold an investment in property are dependent on everyone’s circumstances, and each offer different advantages. “The right structure depends on the trustee’s circumstances and should always be considered alongside professional advice. From a lending perspective, corporate trustee structures can provide greater consistency, clearer administration and stronger continuity as membership and trustee arrangements evolve over time,” he said. “Ultimately, structure decisions should support broader legal, tax, estate

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planning and succession objectives, not just borrowing outcomes.” A more specialised lending space means more protection

Christofides said SMSF lending is more specialised than traditional lending, and with good reason. “The additional documentation, governance and compliance requirements reflect that borrowing is occurring within a retirement savings structure and therefore operates under a different set of obligations to traditional lending,” he said. “The biggest challenge for trustees is often coordination. There can be multiple parties involved, including advisers, accountants, brokers, legal providers and lenders. Trustees who achieve the strongest outcomes are usually those who seek advice early, understand the requirements upfront and work with experienced professionals who specialise in the SMSF environment.”

AMP

Access to quality lending solutions remain critica l for SMSF trustees, despite budget changes

SMSF TRUSTEES ARE OFTEN BALANCING RENTAL INCOME, CONTRIBUTIONS, EXPENSES, LOAN REPAYMENTS AND LIQUIDITY REQUIREMENTS OVER MANY YEARS

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Look beyond the headlines for a quality lending relationship

When it comes to lending there are several things which SMSF trustees and advisers should look for when selecting a lending partner, he continued. “Trustees and advisers should look beyond the headline rate and focus on the quality of the lending relationship. Consistency of policy, service, digital capability, broker support and a lender’s long-term commitment to the SMSF sector often become more important than small pricing differences over the life of a loan,” Christofides said. “We also know flexibility matters. One area where AMP has received particularly strong feedback is around offset functionality. SMSF trustees are often balancing rental income, contributions, expenses, loan repayments and liquidity requirements over many years.”

Image: AMP

Additional features that help trustees manage cash flow efficiently while offsetting their interest repayments

AMP

Access to quality lending solutions remain critical for SMSF trustees, despite budget changes

COMMERCIAL PROPERTY IS ONE AREA WE EXPECT WILL CONTINUE TO ATTRACT INTEREST FROM TRUSTEES AND ADVISERS, PARTICULARLY GIVEN IT REMAINS OUTSIDE THE RECENT CHANGES IMPACTING RESIDENTIAL BORROWING

and maintaining access to their funds, can provide valuable flexibility as circumstances change, he added. “Ultimately, trustees should be looking for a lender that understands the SMSF environment and is committed to supporting them over the long term.” Competition and choice remain critical

Despite the myriad changes in the regulatory environment over the past few months, Christofides is confident the SMSF market will continue to evolve as Australians seek greater control, visibility and flexibility over how they invest for retirement. “As the sector matures, we expect trustees to demand broader choice, better service and more sophisticated lending solutions. Commercial property is one area we expect will continue to attract interest from trustees and advisers, particularly given it remains outside the recent changes impacting residential borrowing,” he said.

Image: Shutterstock AI Generator

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“For AMP Bank, residential SMSF lending remains our focus today. However, we see commercial lending as an important part of the broader SMSF ecosystem and are continuing to build our capability over time. “More broadly, what’s most important is that SMSF trustees continue to have access to committed, regulated lenders. Competition, choice and ongoing access to refinancing will remain critical for the sector.”

Website image here

Independent Reserve

The new SMSF client is under 45, holds crypto, and not via ETF.

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The new SMSF client is under 45, holds crypto, and not via ETF. Cryptocurrency continues to find a steady foothold in Australian investing. Even with markets currently in a downturn, and even allowing for the appropriate scepticism that has long surrounded the asset class, adoption has kept climbing, and trustee behaviour inside the self-managed super fund (SMSF) cohort points to a maturing and durable shift rather than a passing trend. The Independent Reserve Cryptocurrency Index (IRCI) Australia 2026 finds that cryptocurrency ownership has risen to 33 per cent of the adult population, with more

Image: iStock/miniseries

Independent Reserve

The new SMSF client is under 45, holds crypto, and not via ETF.

THIS WILL ONLY ENCOURAGE FURTHER INNOVATION ACROSS THE SECTOR, AND WE HOPE IT WILL LEAD TO MORE EXCITING PROJECTS LAUNCHING IN AUSTRALIA IN THE COMING YEARS Adrian Przelozny

Group CEO Independent Reserve

Image: Shutterstock AI Generator

than half of Australians aged 25 to 44 now interacting with digital assets. The pattern inside the SMSF cohort is sharper still, and the implications for trustees, their advisers, and their auditors are now structural rather than speculative. What a maturing market actually looks like

Adrian Przelozny, CEO of Independent Reserve, said the past 12 months have changed the industry’s relationship with regulators and mainstream finance. With ASIC’s updated guidance now clarifying that some digital assets are financial products under the Corporations Act, and new legislation extending the Australian Financial Services Licence (AFSL) framework to digital asset platforms, institutional adoption “cannot be ignored”. “This will encourage further innovation across the sector, and we hope it will lead to more exciting projects launching in Australia in the coming years,” Przelozny said. “The ASIC chair even said that

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Australia must act on tokenisation or risk being ‘left behind’.” Adoption in 2026 reached its highest levels yet, with 33 per cent of respondents owning crypto, up from 31 per cent in 2025. Nearly a third of Australians plan to invest in crypto over the next 12 months, and 9 per cent of current non-investors say they intend to enter the market this year. Bear market sentiment is not translating into bear market behaviour. Bitcoin remains the foundation, owned by 71 per cent of investors, followed by Ethereum at 33 per cent, up from 30 per cent in 2025. Nearly half (48 per cent) of crypto investors hold between 2 and 5 cryptocurrencies, while 11 per cent hold 6 or more. The next generation of SMSF trustees has arrived

Olivia Long, Founder and CEO of SMSFai, said recent data reveals record numbers of new SMSF establishments in the first quarter of FY26, with a continued shift

Independent Reserve

The new SMSF client is under 45, holds crypto, and not via ETF.

toward Millennial and Gen X trustees.

allocation band, 4 in 5 have allocated more than 10 per cent of the portfolio to crypto, and 2 in 5 have allocated more than 20 per cent. At these levels, crypto is functioning as a deliberate portfolio decision rather than an exploratory holding.

“These investors are establishing SMSFs earlier and with lower starting balances than previous generations. This is not accidental. It reflects a growing desire for ownership, transparency, and a handson approach to building long-term wealth,” Long said. Almost half (46 per cent) of SMSF investors are likely to invest in Bitcoin, a notable jump from 36 per cent in 2025. Crypto in SMSFs is overwhelmingly a sub-45 phenomenon, with 63 per cent of under-45 SMSF holders reporting crypto exposure, compared with just 14 per cent of those 45 and over. The clients walking through the door over the next decade are bringing different assumptions about what belongs inside a fund, and they are arriving in numbers. Material allocations, not test positions

If crypto in SMSFs were truly a speculative dabble, the allocation data would show it. Among the SMSFs that disclosed an

The IRCI found that 45 per cent of respondents who claim to have an SMSF report having exposure to Bitcoin and crypto, dramatically higher than ATO regulatory data has historically suggested. The gap warrants caution about self-reporting and definitions, but even halved, this number represents a far larger crypto-in-super footprint than advisers are likely planning for. For context, in 2019, only 13.6 per cent of SMSFs said they were likely to invest in cryptocurrency through their SMSF. The implication for advisers and auditors is that when an SMSF holds crypto, it is materially weighted, with corresponding sole-purpose test, diversification, and

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investment strategy documentation considerations under SIS Reg 4.09. Compliance over speculation

The strongest signal that crypto is structurally embedded, rather than cyclically fashionable, is what SMSF trustees say they care about when choosing a platform. Ease of use ranks first, closely followed by platform security, then tax and accounting integrations, and audit-friendly reporting. These are the priorities of investors who plan to hold across cycles. Image: iStock/FreshSplash

Independent Reserve

The new SMSF client is under 45, holds crypto, and not via ETF.

THIS REFLECTS A MATURING SECTOR. DIGITAL ASSETS ARE INCREASINGLY BEING CONSIDERED AS PART OF BROADER PORTFOLIO DISCUSSIONS, ALONGSIDE ETFS, EQUITIES, AND ALTERNATIVE ASSETS, RATHER THAN AS REACTIVE ALLOCATIONS DRIVEN BY HEADLINES

“The IRCI data suggests SMSF investors are approaching crypto pragmatically. Ease of use, platform security, tax integration, and audit-friendly reporting matter more than speculation,” Long said. “This reflects a maturing sector. Digital assets are increasingly being considered as part of broader portfolio discussions, alongside ETFs, equities, and alternative assets, rather than as reactive allocations driven by headlines.”

Olivia Long,

Founder and CEO, SMSFai

SMSF trustee indecision on Bitcoin has also dropped from 35 per cent to 27 per cent. Trustees are not retreating to “don’t know” during this downturn. They are forming positions. The direct route, not the wrapper

Long noted that a significant proportion of new SMSFs continue to be established without formal advice, heightening the responsibility on trustees to ensure digital asset exposure aligns with their documented investment strategy, risk tolerance, and compliance framework.

When asked how they would invest in Bitcoin via their SMSF, 27 per cent of respondents chose a crypto exchange versus 19 per cent for a spot ETF, a ratio of 1.4:1. In 2025, those figures were 22 per cent and 14 per cent, respectively. The exchange route grew by 53 per cent

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between 2024 and 2026, while the ETF route grew only 9 per cent, despite Australia’s spot Bitcoin ETF launches during that period. Direct custody is winning, which means the next decade of SMSF conversations will not be limited to wrappers and tickers. Trustees will arrive with wallet questions, exchange statements, and queries about how their accountant proposes to handle CGT events. The bottom line

The signal across the IRCI 2026 findings is consistent. Crypto adoption inside SMSFs is growing, allocations are meaningful, and trustees are approaching the asset class with the same compliance and portfolio considerations they apply elsewhere. For SMSF accountants and advisers, the opportunity is in meeting clients where they already are, with the documentation, platform guidance, and strategic framing that make digital assets a well-managed part of the fund.

Technology

Technology transformation in SMSF investing

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Technology transformation in SMSF investing:

How modern platforms are reshaping trustee decision-making

Image: Kirill Neiezhmakov/Shutterstock.com

Technology

Technology transformation in SMSF investing

Self-managed super fund trustees are operating in one of the most technologically advanced investment environments Australia has ever seen. The combination of global market access, sophisticated analytics, AIdriven insights, and digital-first asset platforms has fundamentally changed how trustees research, execute and monitor their long-term investment strategies. As SMSFs continue to grow in number and complexity, technology is no longer a convenience but an important consideration for diversification and informed decision-making.

CHESS-sponsored ownership for ASX assets, high-quality automated reporting, domestic and global multi-asset access, integrated research tools, analytics, lowfriction execution and portfolio oversight.

The technology imperative for SMSF trustees

Investing through an SMSF operates under a unique regulatory and administrative framework. Every trade, dividend, corporate action and valuation must be auditable and attributable to the fund, which means that trustees require platforms with a certain level of support. This support includes features such as

CHESS sponsorship remains an important consideration for SMSF trustees investing in ASX-listed securities, as holdings are registered directly under the fund’s HIN and name. CMC Invest provides CHESS sponsorship for ASX-listed securities, while international shares, crypto and other asset classes are beneficially held by the SMSF through custodial arrangements. The rise of multi-asset digital platforms

One of the most significant technological shifts in SMSF investing is the consolidation of trading platforms, resulting in the availability of different asset classes on a unified digital platform. Historically, trustees relied on separate systems for equities, international markets, managed funds, alternatives and cash.

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Today, platforms like CMC Invest bring these together, enabling SMSF trustees to manage diversified portfolios without fragmentation. CMC Invest provides access to over 40,000 stocks and ETFs across 16 markets, alongside options, crypto and other instruments, all through one platform. This multi-asset capability allows trustees to move beyond traditional domestic equities and incorporate global exposures, thematic ETFs and alternative assets. This consolidation of asset classes into single platforms is reshaping SMSF portfolio construction because trustees can now not only build global equity portfolios, but access thematic and sector-specific ETFs and incorporate crypto or digital assets. It also offers options for hedging or income strategies; and allows trustees to explore alternative exposures such as commodities, resulting in a more flexible, diversified and technology-enabled investment environment.

Technology

Technology transformation in SMSF investing

ETF technology: The engine behind modern diversification

Exchange-traded funds (ETFs) have become a cornerstone of SMSF portfolios due to their liquidity, transparency and diversification benefits, but behind the simplicity of ETF trading lies a sophisticated technological ecosystem. Platforms like CMC Invest integrate discovery tools, thematic watchlists and research tools. With over 15,000 ETFs available across the ASX and 15 international markets, trustees can explore opportunities spanning regional diversification, sectors, industry investment themes, and ESG considerations. Trustees can also research currency exposure, index-tracking approaches, emerging markets, plus technology and innovation themes. CMC Invest’s platform supports this research with performance overview, price projections, ESG risk ratings, and advanced filtering and screening tools. Image: PeopleImages/Shutterstock.com

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These capabilities allow trustees to evaluate ETFs not just by ticker, but by underlying exposures, volatility, cost structure and long-term performance characteristics. Thematic ETF discovery, such as AI, renewable energy, big tech or cryptolinked ETFs is increasingly important for SMSFs seeking growth opportunities aligned with global trends. Platforms that surface these themes through curated watchlists or AI-driven insights are helping trustees make more informed allocation decisions. AI and intelligent insights: A new layer of decision support

CMC Intelligence, CMC Invest’s AIpowered feature, is a leading example of how AI is being integrated into investment platforms to support selfdirected decision-making. CMC Intelligence uses AI to analyse market data, news, price movements and portfolio context, then brings

Technology

Technology transformation in SMSF investing

this information together into clear, explainable summaries that help trustees understand what is likely driving markets, individual instruments and their portfolio. This reduces the need to manually piece together information from multiple sources, which is a common challenge for SMSF trustees managing a diversified portfolio.

Portfolio visibility and reporting technology

Alternative assets and digital access

SMSF trustees are increasingly exploring alternative assets such as crypto, commodities, and non-traditional investments. Technology is making these asset classes more accessible through features such as digital exchanges, tokenised assets, custodian platforms and multi-asset brokers. CMC Invest, for example, provides access to crypto alongside traditional instruments, allowing trustees to incorporate digital assets, should their trust deed and investment strategy allow it.

Portfolio oversight is critical for SMSFs, and modern platforms are providing trustees with increasingly sophisticated reporting capabilities. These can include real-time portfolio valuations, cash-flow tracking, access to ASX-listed company announcements, corporate action information, tax-time summaries, year-end valuation reports, plus integrated accounting feeds.

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TECHNOLOGY IS MAKING THESE ASSET CLASSES MORE ACCESSIBLE THROUGH FEATURES SUCH AS DIGITAL EXCHANGES, TOKENISED ASSETS, CUSTODIAN PLATFORMS AND MULTI-ASSET BROKERS.

The CMC Invest platform, for example, is compatible with leading SMSF accounting software, including BGL and Class Super, which provides comprehensive reporting across holdings, cash and investment activity. These tools reduce administrative burden, improve audit readiness and help trustees maintain compliance while focusing on strategic investment decisions. Image: CMC Invest

Technology

Technology transformation in SMSF investing

Technology is redefining SMSF investing

Disclaimer:

The SMSF sector is undergoing a profound technological transformation. Trustees now have access to global markets, multi-asset platforms, AIpowered insights, advanced ETF discovery tools and digital alternative asset platforms all designed to support informed, self-directed investing.

CMC Invest stands out as a leading example of this evolution, offering broad market access, multi-asset flexibility, CHESS-sponsored ownership, AI-driven intelligence and integrated research tools. The broader ecosystem, including ETF technology, alternative asset platforms and global brokers, is equally important in shaping the future of SMSF investing. For trustees, the message is clear: technology is no longer optional. It is the foundation of modern SMSF portfolio management, diversification and longterm strategic success.

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CMC Markets Stockbroking Limited (CMC Invest) is an execution-only service provider. The article (whether or not it states any opinions) is for general information and education purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment, tax or other advice on which reliance should be placed; and is not warranted to be complete, accurate, or timely. No opinion given in the material constitutes a recommendation by CMC Invest or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. CMC Intelligence does not provide advice and may not consider the most up to date information. Investing in cryptocurrencies carries significant risks and is not suitable for all investors. You may lose all your money you paid. Consequently, you should consider the information in light of your objectives, financial situation and needs and do your own research. It’s important for you to consider the relevant Digital Assets Terms of Service and other associated disclosure documents on the CMC Invest website before you decide whether or not to acquire any of the Cryptocurrencies. Please also note that you are not currently able to send Cryptocurrencies to or from your trading account, or use Cryptocurrencies purchased on CMC Invest’s Platform to pay for goods or services. The provision of cryptocurrency services and products will not be treated similarly to the provision of regulated financial services or products and you are not afforded the same client protection provisions offered by the Corporations Act 2001 (Cth) as you would trading regulated financial products or receiving regulated financial services. Cryptocurrencies are held with a sub-custodian.

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