What must trustees do before winding up an SMSF?

They should check the trust deed, document the decision, dispose of assets lawfully, pay liabilities and calculate member benefits.

Does the final SMSF return need an audit?

Yes. The final-year financial statements and compliance must be audited by an approved SMSF auditor before the final annual return is lodged.

How does the ATO learn that the SMSF is winding up?

The trustees lodge the final SMSF annual return and complete the wind-up labels, including the wind-up date.

When should the SMSF bank account be closed?

It should be closed last, after liabilities and refunds are dealt with, rollovers are complete and ATO confirmation has been received.

Can trustees simply withdraw the remaining balance?

No. Member benefits must be paid or rolled over in accordance with superannuation law, the trust deed and applicable conditions of release.

How to Wind Up an SMSF: ATO Process and Final Steps

An SMSF cannot be closed by simply emptying its bank account. Trustees must complete the fund’s asset, liability, audit, reporting and benefit-payment obligations in the correct order.

Finalising the fund

The trustees should check the deed and exit plan, record the decision to wind up, dispose of assets lawfully, pay outstanding liabilities and calculate each member’s benefit. Enough cash should remain to meet final tax, accounting and audit expenses.

An approved SMSF auditor must complete the final audit before the trustees lodge the final annual return. The return tells the Australian Taxation Office that the fund was wound up and states the relevant date.

Rollovers and closure

Benefits must be paid or rolled over lawfully, including through SuperStream where required. Trustees should not treat money remaining in the fund as an unrestricted personal withdrawal.

The ATO directs trustees to close the SMSF bank account last. Before doing so, ensure all liabilities have been paid, refunds received, rollovers completed and ATO wind-up confirmation obtained.

Do not close the bank account or withdraw funds prematurely. Either step can delay finalisation or create serious compliance and tax consequences. Ask the registered tax agent to confirm exactly what has been lodged and what remains outstanding.

How Do You Wind Up a Self-Managed Super Fund?

Finalising the fund

Rollovers and closure

See Also

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