Newly published tax data shows that just under 515,000 self-managed superannuation funds (SMSFs) operated in Australia in FY23.
This amounts to about 15.3% of all Australian superannuation funds.
The number of self-managed funds noticeably declined in FY23 after five consecutive years of more than 540,000 SMSFs in operation.
In FY23, we saw a net decrease of 26,759 self-managed superannuation funds, or almost 5%.
ASX shares are a popular investment among SMSF investors.
More than 220,000 SMSFs — or 43% of those in operation — reported franked dividend income in FY23, down 4.8% on FY22.
More than 164,000 SMSFs — or 32% — reported unfranked dividend income from shares, down 4.5% on the previous year.
About 141,000 SMSFs — or just over one in four — reported rental income from an investment property, down 7% on FY22.
In terms of income, about 155,000 SMSFs reported a loss or no taxable income in FY23.
That was the most common scenario for SMSFs, suggesting aggressive growth investment strategies (or poor management!).
Aggressive growth strategies tend to return little to no income as the investor pursues long-term capital growth over annual yield.
The second biggest taxable income category was $10,000 to $49,999 per annum, with 150,000 SMSFs falling into this bracket.
Just over 1,400 SMSFs reported a taxable income of $1 million or more in FY23.
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Which ASX shares are popular with SMSFs?
Today, ASX shares and international shares remain a popular investment vehicle for SMSF investors.
Data from wholesale trading platform provider AUSIEX provides some insight into which ASX shares SMSFs are currently favouring.
The data pertains to high-net-worth individuals (HNWIs) with more than $3 million in assets in their superannuation funds.
HNWI is a globally recognised term that refers to people who have investable assets worth US$1 million or more.
AUSIEX has split the data between retail and advised clients.
Advised clients have sought professional advice to make investment decisions, and may also have their SMSFs monitored by experts.
This data split provides extra insight into how professional advice may be influencing SMSFs' decision-making on which ASX shares to buy.
Most popular ASX shares among SMSF investors
These were the top 10 ASX shares purchased by SMSF investors with more than $3 million in their funds last month.
Retail HNWI SMSF accounts above $3M
| Rank | ASX share |
| 1 | Woodside Energy Group Ltd (ASX: WDS) |
| 2 | Nine Entertainment Co. Holdings Ltd (ASX: NEC) |
| 3 | BHP Group Ltd (ASX: BHP) |
| 4 | Many Peaks Minerals Ltd (ASX: MPK) |
| 5 | Pepper Money Ltd (ASX: PPM) |
| 6 | Macmillan Shakespeare Ltd (ASX: MMS) |
| 7 | Rio Tinto Ltd (ASX: RIO) |
| 8 | Commonwealth Bank of Australia (ASX: CBA) |
| 9 | CSL Ltd (ASX: CSL) |
| 10 | Pilbara Minerals Ltd (ASX: PLS) |
Source: AUSIEX
Advised HNWI SMSF accounts above $3M
| Rank | ASX share |
| 1 | CSL Ltd (ASX: CSL) |
| 2 | Golden Horse Minerals CDI (ASX: GHM) |
| 3 | VanEck S&P/ASX MidCap ETF (ASX: MVE) |
| 4 | Scentre Group (ASX: SCG) |
| 5 | Sigma Healthcare Ltd (ASX: SIG) |
| 6 | BHP Group Ltd (ASX: BHP) |
| 7 | National Australia Bank Ltd (ASX: NAB) |
| 8 | VanEck Global Defence ETF (ASX: DFND) |
| 9 | Treasury Wine Estates Ltd (ASX: TWE) |
| 10 | Woolworths Group Ltd (ASX: WOW) |
Source: AUSIEX
