Winding up your Self-Managed Super Fund (SMSF)
Winding up your SMSF is a big decision. It can be a complex process so understanding the steps, timeframes and tax implications can help you feel confident about what to do next. Keep reading to learn about the paperwork involved and the next steps for your super.
If your circumstances have changed and you no longer want to manage your savings through an SMSF, you can transfer your super to an AustralianSuper account.
How to wind up your SMSF
There are several steps involved in winding up your SMSF. You may consider getting help from a tax professional and/or financial advisor.
As an AustralianSuper member, you get access to a range of financial advice options1. Find a financial adviser that can help you with winding up your SMSF.
A simple checklist can ensure that every task is completed when it comes to winding up your SMSF.
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How to begin
- Write down the decision to close the SMSF and check that your trust deed allows it. Update the deed if needed.
- Tell all members, trustees, advisers, and service providers, such as your administrator, accountant, auditor, bank, share registries, and investment platforms.
- Check the trust deed for rules about paying out assets, closing accounts, and using professionals.
- Stop accepting new contributions and don't make new investments once you decide to close the fund.
- Get up to date balances and values for all assets, including property, shares, cash, and private investments.
- Plan how benefits will be paid, such as moving money to another fund, stopping pensions, or paying lump sums if members are eligible.
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Important actions
- Tell the ATO that you're closing the SMSF, either online or through your tax agent.
- Keep the SMSF following the rules until it is fully closed, including having an investment strategy and keeping clear records.
- Pay any unpaid bills and taxes. If pensions are being stopped, make sure the reporting is up to date.
- Only close bank accounts after all bills, taxes, and other costs are paid.
- Keep important records, such as trust deeds, meeting notes, financial statements, member statements, and actuarial certificates, for the required time.
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Final steps
- Prepare final financial records and member statements up to the date the SMSF is closed.
- Arrange an independent audit for the final year, even if the fund closes during that year.
- Lodge the final SMSF annual return with the audit report and pay any remaining tax. Capital gains tax (CGT) may apply if assets are sold.
- Once the ATO confirms everything is complete, cancel the fund’s ABN and any GST registrations. Visit the ATO website for a full list of instructions.
Visit the ATO website for a full list of instructions.
Before you wind up your SMSF
Reasons to wind up an SMSF
Cost and time considerations
Changes in personal circumstances
Transition to retirement
Distributing SMSF assets and benefits
Closing an SMSF means you must sell or transfer all assets and pay out member benefits according to the trust deed and super laws.
Asset distribution options
- Assets can be sold and the money paid out as a lump sum or moved to another super fund
- Some assets, like listed shares, can be transferred directly if the new fund allows it, and
- Property usually needs to be sold unless it can be transferred and is practical.
Pensions and rollovers
- Any pensions need to be moved back to the accumulation phase before transferring money to another fund, and records must be kept accurate
- Rollovers to a complying super fund, such as AustralianSuper, are done through the ATO’s secure SuperStream system, and
- Giving the new fund complete and correct member details helps avoid delays.
Managing liabilities and expenses
- Pay any unpaid bills, including tax and audit fees
- Pay off loans or sell any assets linked to borrowing arrangements, and
- Keep enough cash to cover final costs, then pay out any remaining money to members.
Rolling your super into AustralianSuper
An SMSF rollover (or ‘rolling in’) happens when you transfer some, or all, of your SMSF balance into a complying super fund, like AustralianSuper. You can’t complete a rollover as a normal super contribution.
A financial adviser can help you complete your SMSF rollover. Learn about your advice options at AustralianSuper
Here's some tips for rolling your super savings into your AustralianSuper account.
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Who needs to be notified?
You need to notify the ATO, all trustees or directors, fund members, and service providers such as administrators, accountants, auditors, banks, share registries, property managers, and insurers. Update contact details and close all accounts once everything is finalised.
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How long does it take?
Most SMSF wind ups take a few months. Property sales, private assets, audits or ATO processing may impact the timeframe.
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Know your Electronic Service Address (ESA)
Your Electronic Service Address (ESA) is what your SMSF has been using for electronic communications data. If you don’t know your ESA, contact the messaging provider who issued it when your SMSF was set up, or your SMSF intermediary such as SMSF administrator, financial adviser, tax agent, accountant or some banks.
Find out more about ESAs on the ATO website.
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Can I keep my investments when moving to another fund?
In-specie transfers, which means moving assets like shares without selling them first, are limited. Most complying super funds only accept cash transfers, and some may accept listed shares, so you should check first.
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What records should I keep?
Keep trust deeds, meeting notes, financial records, tax returns, audit reports, and member statements for the required period.
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Will I pay Capital Gains Tax (CGT)?
You may need to pay CGT when assets are sold. Any tax owed will be shown in the final SMSF tax return. The timing of sales and available concessions may help reduce the tax.
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Can a partially retired member wind up the SMSF?
Yes. If a member meets a condition of release, they can move their super to another fund to start a pension or take allowed lump sums before the SMSF is closed.
AustralianSuper numbers to know
ABN
65 714 394 898
SPIN
STA0100AU
SFN
2683 519 45
Super USI
STA0100AU
Choice Income USI
STA0002AU
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Disclaimers
- Personal financial product advice is provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd. Fees may apply.
- AustralianSuper insurance is provided by TAL Life Limited (the Insurer) ABN 70 050 109 450, AFSL 237848.