Key points
  • SMSFs can have between one and six members.
  • Single-member funds must use either a corporate trustee structure or appoint a second individual trustee.
  • Larger SMSFs may benefit from greater capital and lower costs per member, though they can also introduce more complexity and risk of disagreement.

SMSFs are allowed between one and six members, all of whom will either be individual trustees or directors of a corporate trustee charged with managing the fund. Though, single member funds face additional hurdles, as SMSFs are required to have either multiple or corporate trustees.

How many members can an SMSF have?

Legislation to increase the number of members allowed in SMSFs from four to six came into effect in 2021. That saw SMSFs suddenly open to larger family units and groups of people willing to pool their retirement savings into a single investment strategy. However, most SMSFs are made up of one to two members.

  1. As of mid-2025, around 1.2 million Australians held their super in 650,000 SMSFs - an average of 1.8 members per SMSF, according to ATO figures.

Importantly, while the law allows for SMSFs to have up to six members, some funds might find their trust deed allows fewer. This can particularly be the case with older trusts, deeds for which may have been written many moons ago.

  1. Savings.com.au's two cents

You might have put adding a new member to an SMSF in the 'too hard basket'. If so, you're not alone. Most people leave their retirement funds in the hands of the professionals - the big superannuation funds - to secure their financial futures.

But if you're a savvy investor that wants to be in control of their own money, an SMSF might be right down your alley. Whether it's just you or you'll have multiple members, there are a lot of options at your fingertips. Having an SMSF means, from one to six members, you can put as many fingers in as many pies as you'd like.

Single member SMSFs: A guide

The major hurdle facing single member SMSFs is the requirement that they must either appoint a corporate trustee or nominate a second trustee:

  • Individual trustees
    Individual trustee structures must have two trustees, with one being the member of the fund
  • Corporate trustees
    Corporate trustees are companies set up specifically to act as trustee of an SMSF. The corporate trustee can have one or two directors, and the fund member must be a director

Establishing an SMSF with individual trustees is relatively simple, with no additional establishment costs or ongoing fees involved.

On the other hand, establishing a company to act as a trustee can cost anywhere from a few hundred dollars to over $1,000 and demands ongoing fees, charged by ASIC. A corporate trustee structure does offer additional benefits, as it makes it easier to add or remove members without changing the names the fund's assets are held in. Changing asset titles is expensive, time-consuming, and often downright inconvenient.

The ins and outs of multi-member SMSFs

When it comes to SMSFs, the phrase 'the more the merrier' can sometimes ring true. A larger fund often has more capital to work with, as multiple members' retirement savings are pooled. This can also help spread fees more thinly across each member. However, bigger SMSFs can introduce additional complexities.

Advantages of having many SMSF members

Disadvantages of having many SMSF members

  • Need to compromise and potential for disagreements
    With more people comes exactly that - more people. There will be more voices and opinions involved in all the decision making, which ultimately, leaves room for more indecision. One person might expect certain returns, another might be uncomfortable with any risks - it can just make things a little more complicated.
  • Challenges with exiting the fund
    As grim as it sounds, more members means more risk that one or more members may pass away. The more people who keep their super in a single SMSF, the more important that death benefit planning likely becomes.

How to add new members to an SMSF

Whether your SMSF has a corporate or individual trustee structure, adding a new member is always an option. However, depending on the trust deed, who can join your SMSF (if anyone at all) may be more up in the air. Here are the high level details:

  • New members must consent in writing to becoming a member of an SMSF

  • They must sign a trustee declaration from the Australian Taxation Office (ATO) and submit it

  • Their membership must also be discussed, agreed to by all parties, and recorded in minutes at a trust meeting

  • They must not be deemed a 'disqualified person'To become a member of an SMSF, a person must not have been convicted of a dishonest offence, currently bankrupt or insolvent, issued with a civil penalty order, or disqualified in the past.

The ATO must be notified within 28 days of any changes made to an SMSF. These changes might relate to:

  • Trustees
  • Directors of the corporate trustee
  • Members
  • Contact details
  • Address
  • Fund status

Specifics on adding a new member to an SMSF with a corporate trustee

If you have an SMSF that's operating under a corporate trustee, adding new members and removing old ones is pretty straightforward. All you need to do is add them as a director of the company, notify the ATO (and possibly ASIC). Since the corporate trustee remains the same, titles of the SMSF's assets don't need to be changed or updated.

Specifics on adding a new member to an SMSF with individual trustees

With individual trustees, you'll need to follow the same protocol of informing the ATO about any new members joining the fund - and jump through some more hoops. If an individual trustee is removed or added from an SMSF, the titles of the trust's assets must be changed. This makes it more costly, time consuming, and typically pretty annoying.

Where you can update the details of your SMSF

There are a few ways you can let the ATO know you've made changes to your SMSF. You can either do it:

  • Online through the Australian Business Register
  • Through a registered agent
  • Over the phone
  • By lodging the paper form 'Change of details for superannuation entities (NAT 3036)'

If you've added a new member or trustee to an SMSF, the ATO could choose to review them (if there's a reason to do so). In this review period, the SMSF is taken offline, and the ATO aims to finish its review within 56 days. This is to "safeguard the retirement of Australians."