Masterclass SMSF – Winding up and SMSF – Reasons and what steps are required

Masterclass SMSF – Winding up and SMSF – Reasons and what steps are required

SMSF – Winding up and SMSF – Reasons and what steps are required

Many reasons can lead to a decision to close or wind-up your SMSF – but if a change of trustee is the issue, there may be strategies you can apply to keep the SMSF running, as we wrote HERE.

However if closing is the necessity, such as one client who was a  single-member fund with himself as director of a Corporate Trustee and had passed away before he was 60, wind-up is necessary when the trustee of the estate and family request it.

Reasons to Wind up – 

There can be several reasons to wind up your SMSF:

  • Members tired of the responsibilities;
  • Assets reduced that it is no longer cost effective;
  • Key member becomes non-resident for Australian taxation purposes;
  • Inability to run the fund due to health reasons of a key member.

Steps to wind up –

A number of tasks need careful management, and is an involved process.

The first place to start is to check all prior year tax and compliance obligations have been met. Then check the trust deed for any specific requirements. Then all members should sign a minute/resolution that they all agree to close the fund and the reasons. Then members need to write to the fund stating whether the benefits are to be rolled into another super fund or paid as a lump sum (if the correct preservation and release conditions apply).

Next draft financial statements are prepared to determine member balances/benefits, factoring in future expenses such as accounting, audit, tax, capital gains, levies and expected income. Assets need to be sold; occasionally “in-specie” (other than money) transfers can occur. Relevant change of ownership documents may need to be prepared.

The final annual return is lodged after assets sold, member benefits paid and audit reports received. The SMSF then notifies the ATO in writing within 28 days, and wait for the ATO to issue written confirmation of ABN cancellation and recording the fund closure.

With corporate trustees, the directors must decide if the company should remain running or be would up. Even if not trading a company remains registered and subject to annual review fees. There are two ways to close down (deregister) the company – apply to ASIC to voluntarily deregister, or a member’s voluntary wind-up initiated by company members. Best to seek assistance. Books must be kept for three years.

Interested to know what self-managed super (SMSF) is all about, and if it is for you?

See the slides SMSF Roadmap Overview.

If you want experts who have years of helping others, without the hype – then call for a FREE strategy session today and see how our Super-Connector Service assists you to find the right expert to answer your question – it’s FREE also!

No obligation. 0407 361 596, Paul.

Also get your FREE Expert Guide – Self-Managed Super and Youtop right hand side above.


SuperBenefit works with SMSF trustees to CONNECT them with the advisors they need. A call is FREE.

If you have any questions, why not give us a call – it’s FREE! No obligation. 0407 361 596, Paul


About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
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