In February 2025, former U.S. President Donald Trump announced his trade policy platform for a potential second term. Among the headline measures was a 10 percent tariff on all imports, alongside additional duties of up to 60 percent on Chinese goods. While the proposal is still political, markets have not ignored it.
In the weeks following the announcement, the Australian dollar dropped below 64 U.S. cents, its lowest level in nearly three years. Market analysts cited renewed global uncertainty and expectations of slower global growth. By April, SuperRatings reported that the median balanced super fund had returned just 0.1 percent for the month, following a flat March and a slight decline in February.
For many Australians, these numbers won’t trigger panic. But they do raise questions, particularly about how much control super members have over their investments, and what options exist when global politics start shaping retirement outcomes.
One answer, which had faded from mainstream attention in recent years, is now re-entering the conversation: the self-managed super fund.
Not New, But Relevant Again
Self-managed super funds (SMSFs) are not a new structure. They have existed since the 1990s and are regulated under the Superannuation Industry (Supervision) Act 1993. What is changing in 2025 is the level of interest and the reasons behind it.
According to the Australian Taxation Office’s March 2025 quarterly report, 6,732 new SMSFs were established in the December 2024 quarter. That represents a 6.2 percent increase from the same quarter in 2023. The overall SMSF population now exceeds 610,000 funds, managing more than $890 billion in assets.
This growth comes after several years of plateauing registrations. Between 2020 and 2023, SMSF establishment slowed as industry funds improved transparency and technology, and as regulatory reviews placed greater scrutiny on small-balance funds. But with global instability back in focus, some investors are reconsidering SMSFs as a way to improve visibility, not to beat the market, but to better understand what they are exposed to.
Understanding What You Hold
Most Australians are invested in large super funds through default MySuper products. These balanced portfolios typically hold around 50 to 70 percent growth assets, including equities, infrastructure, and property. According to SuperRatings, international equities often make up between 20 and 30 percent of a balanced fund’s allocation.
That allocation brings risk and opportunity. During strong global economic periods, international equities enhance returns. But in periods of volatility, such as trade wars, global rate shifts, or geopolitical conflict, they can introduce unexpected losses.
The challenge for many members is not just the volatility itself, but the limited transparency around how those allocations are managed.
A 2023 survey by Vanguard Australia found that more than 60 per cent of Australians could not identify the specific asset mix of their super fund. Many also reported low confidence in understanding what changes had been made in response to global economic events.
“We’re getting more questions this year about what’s actually in someone’s super,” said Jimmy Nguyen, Senior Tax Accountant at DKM Accounting.
“They’re not trying to day-trade. They just want to know what exposure they have and whether there’s a way to reduce it.”
Control Versus Performance
An SMSF allows members, usually individuals, couples, or families, to manage their own superannuation investments. This includes choosing specific shares, property, cash holdings, or managed funds. It also allows members to adjust asset allocation more frequently or strategically in response to market events.
But that control comes with responsibility. According to ASIC’s INFO 206 guide, SMSFs with balances under $500,000 may underperform compared to pooled funds once fees and administration costs are factored in. Trustees must also maintain records, ensure independent audits, and comply with contribution and pension regulations.
Setting up an SMSF does not guarantee stronger returns. That is why most people seek advice from a licensed adviser or a specialist SMSF accountant, especially when deciding how to comply with contribution caps and audit obligations.
I’d been with one of the usual super funds for years, but my accountant showed me how much more control I’d have with an SMSF. There’s extra admin, sure, but I’ve got specific retirement plans, and this gave me the flexibility to act on them. - Mark Simons, Director of INH Transport, a Brisbane Freight Company
Why 2025 Feels Different
The renewed interest in SMSFs is not driven by hype. There are no widespread performance gaps between SMSFs and large funds in 2025. Industry superannuation options continue to deliver strong long-term outcomes for the majority of Australians.
But 2025 is presenting something different, a rise in political risk as a tangible investment variable.
In the past 18 months, global equity markets have responded to interest rate shifts, China’s post-COVID demand slump, and now the possibility of a second U.S. trade war. For members of large super funds, those changes are reflected quietly in quarterly statements. For SMSF members, they are decisions to be made directly.
Some investors are turning to their SMSF accountant not to chase returns, but to understand whether they can shift from global equities into defensive local assets without triggering penalties.
A Shift in Investor Psychology
Even a modest rise in SMSF establishments suggests a shift in investor psychology. After years of low interest rates and passive growth, some Australians are now seeing retirement savings through the lens of risk management, rather than just accumulation.
For example, Nguyen notes a trend among small business owners and mid-career professionals who are less concerned with outperforming the market and more focused on ensuring their super aligns with personal risk tolerance.
“They want to know if they can move out of international equities. They want to reduce complexity, not increase it. SMSFs aren’t about doing more, they’re about knowing what you’re doing.”
Final Thoughts: Not for Everyone, But Back in View
SMSFs will not replace industry funds, and they are not suitable for every investor. They require attention, advice, and a willingness to manage detail. But in 2025, the reasons Australians are considering them are shifting.
With guidance from an experienced SMSF accountant, some Australians are finding that the structure offers more than flexibility; it offers clarity.
The question is no longer whether SMSFs are better. The question is whether the current system meets people’s expectations in an uncertain environment.
