Smoothly Closing the Chapter: Essential Steps for Winding Up Your SMSF
What you need to know in the SMSF winding-up process
If you find yourself in a position where you want or need to wind up your SMSF there are a number of key considerations and tasks involved.
Before lodging your final SMSF return you need to dispose of assets and pay out (where a condition of release has been met) or rollover all member benefits (leaving an appropriate amount to pay final tax or expenses if required).
Once your final return has been processed all remaining member benefits must be paid out or rolled over. This includes any refund received from the final return. All benefits must be paid out or rolled over within 28 days of lodging your final return.
All rollovers for winding up an SMSF must be done via SuperStream.
Don’t cancel the fund’s ABN after you lodge final SMSF annual return. Once your final annual return has been processed, the ATO will confirm your fund has been wound up by sending you a letter stating it has:
- cancelled the fund’s ABN
- closed your SMSF records on their system.
Check out the ATO’s winding up checklist that will guide you through all of the steps involved.
You should consider appointing professionals to assist you when winding up your SMSF. Even if you use a professional to help, it is still your responsibility to ensure you correctly wind up your SMSF.