SMSF Wind Up – What You Need to Know
At some point, every Self-Managed Super Fund reaches the end of its journey. An SMSF wind up occurs when the fund is closed and the remaining balances are either paid out as pensions or lump sums, or rolled into another super fund.
There are many reasons trustees decide to wind up an SMSF, including:
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The death of a trustee
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Major health issues or incapacity
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Rising costs that no longer justify keeping the fund open
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Divorce or relationship breakdown
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Trustees relocating overseas
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All members choosing to exit the fund
An SMSF wind up is a natural part of the SMSF lifecycle and should be considered as part of your succession and estate planning. Ideally, these plans should be documented and signed by all trustees. We also recommend discussing your arrangements with an estate planning lawyer to ensure an enduring power of attorney is in place if you’re ever unable to manage the process yourself.
As part of your annual investment strategy review, trustees should regularly consider whether an SMSF remains the right structure. If you’re unsure, an ASIC-licensed financial planner can provide holistic advice covering your super, other assets, and retirement goals.
The SMSF Wind Up Process
While every fund is different, the SMSF wind up process typically includes the following steps:
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Reviewing your SMSF Deed for any specific wind-up requirements
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Holding a trustee meeting and formally documenting the decision to wind up the fund
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Selling or transferring fund assets in line with the Superannuation Industry (Supervision) Act 1993
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Finalising all ATO lodgements, including TBAR reporting and PAYG summaries
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Paying all outstanding tax liabilities and fund expenses
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Ensuring employers redirect future contributions to a new super fund
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Rolling over remaining balances or paying benefits as pensions or lump sums
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Closing the SMSF bank account
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Deregistering the corporate trustee and paying ASIC shutdown fees
Once an SMSF has been wound up, it cannot be reactivated. If you decide to start again in the future, a completely new SMSF setup is required.
This overview is a general guide only—depending on your circumstances, additional steps may be required.
Pensions & Lump Sum Payments
If your SMSF holds illiquid assets and you’ve reached preservation age, it may be possible to transfer those assets in-specie as part of a pension or lump sum payment. This allows assets to be transferred without selling them first, which can be beneficial where no active market exists (such as unlisted shares).
While this approach can be more complex and costly than selling assets for cash, it may be worthwhile in certain situations.
Rolling Over to Another Super Fund
If the SMSF structure no longer suits your needs and you haven’t yet reached preservation age, your super balance can be rolled over into an industry or retail fund.
This involves:
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Selling all SMSF investments and converting them to cash
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Preparing a final SMSF tax return
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Completing a final SMSF audit
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Paying final tax and expenses
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Rolling the remaining balance to your new super fund
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Closing the SMSF bank account
SMSF Wind Up Costs
An SMSF wind up usually involves additional work beyond the standard annual compliance obligations, which means costs are higher than the usual SMSF accounting fee for a partial financial year.
As a general guide, we recommend budgeting an additional $1,500 + GST (paid from the fund) to cover:
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Extra accounting and compliance work
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Final ATO reporting
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Cancellation of the SMSF TFN and ABN
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Preparation of rollover and closure documentation
Need Help Winding Up Your SMSF?
Winding up an SMSF can feel overwhelming—but with the right support, it doesn’t have to be.
If you’d like to learn more about our SMSF accounting services, including wind ups and pricing, our experienced team is here to help.
? Call us on 02 90239977
? Or get in touch online to speak with an SMSF specialist