How Do You Wind Up a Self-Managed Super Fund?
Winding up an SMSF involves paying out or rolling over all member benefits, finalising the fund's investments, completing a final audited financial return, deregistering any special purpose trustee or custodian company where applicable, and retaining the fund's permanent records after the fund is closed.
What steps are involved in winding up an SMSF?
Winding up generally involves selling or transferring the fund's investments, paying out or rolling over each member's balance, settling any outstanding liabilities, and completing a final audit before lodging the fund's final SMSF Annual Return.
What happens to the SMSF trustee company when the fund is wound up?
Where a special purpose trustee company was used, it's commonly deregistered once the fund has been wound up, since it no longer has a purpose. Any LRBA custodian company also generally needs to be dealt with as part of this process.
What is a final SMSF Annual Return and when is it due?
The final SMSF Annual Return is usually lodged as soon as possible after the wind-up process is completed, rather than following the usual annual due dates, so the Trustee’s only remain responsible for record keeping.
What records need to be kept after the SMSF is wound up?
Even after winding up, permanent records such as the Trust Deed, member statements, trustee declarations, and death benefit nominations should be retained for the required minimum periods, and accounting records for at least 5 years from the final year of income.
Frequently asked questions
Can I wind up my SMSF at any time?
Yes, trustees can choose to wind up the fund, though it's worth reviewing whether restructuring rather than winding up entirely might better suit the circumstances first.
What happens to LRBA custodian companies when winding up?
If the LRBA has been fully repaid and the property transferred back to the SMSF trustee, the custodian company is often deregistered as part of finalising the wind up.
How long do I need to keep records after winding up?
Accounting records generally need to be kept for at least 5 years, and permanent records such as the Trust Deed and member statements for at least 10 years, from the relevant date.
Considering winding up your SMSF? Contact Lifetime SMSF on 1300 031 943 or visit lifetimesmsf.com.au to talk to a specialist.
This information is general and factual in nature. It is not financial product advice, legal advice or tax advice. Lifetime SMSF Pty Ltd is not licensed to provide financial product advice under the Corporations Act 2001. If you require personal advice, consult an appropriately licensed or authorised financial adviser.