Leaving or winding up an SMSF: steps and records

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Leaving an SMSF and winding up the entire fund are different decisions. Start by identifying which outcome you need and the accounting, trustee and reporting matters to address.

Plan before moving money

Review the deed and the fund’s exit plan. Consider asset liquidity, wind-up costs, member circumstances and who will retain access to records. Document trustee decisions. The ATO’s SMSF wind-up lifecycle guide provides a planning checklist.

Key steps when the whole fund closes

• Document trustee agreement and check deed requirements.
• Deal with assets, expenses and tax, including possible consequences of asset sales or transfers.
• Calculate member benefits. Cash payment requires the relevant condition of release; otherwise benefits need to be rolled to another complying fund.
• Complete outstanding reporting, the final approved-auditor audit and the final SMSF annual return.

Notify the ATO through the final annual return; a separate letter requesting the fund’s closure is not required. Keep the bank account open until final liabilities, refunds and rollovers are dealt with and ATO wind-up confirmation is received. See how to wind up an SMSF.

Keep records after closure

Closing the fund does not end record-keeping responsibilities. Minimum periods commonly differ between five and ten years according to the record type; related tax records can have additional requirements. Make records accessible to trustees. The ATO’s SMSF record-keeping checklist explains the categories.

Prepare for a discussion

Bring the deed and amendments, latest accounts and return, investment and bank statements, pension details, audit status and proposed member instructions. Identify illiquid assets or unfinished work early. Accounting preparation and independent audit are separate services; agree their scope and fees.

Read about our SMSF accounting support or contact Stewart Private Accounting. Investment and product decisions may require an appropriately licensed adviser.

General information, current at the update date. Your fund and members’ circumstances determine the steps required.