If an SMSF is no longer for you, you need to wind it up.
To wind up your SMSF fund you need to take the following key steps:
- complete any requirements that the trust deed specifies about winding up the fund;
- pay out or rollover all super (leaving a sufficient amount to pay final tax or expenses if required);
- appoint an SMSF auditor to complete the final audit;
- complete and lodge the final SMSF annual return (including wind up details);
- pay any outstanding tax; and
- after all expected liabilities have been settled and requested refunds are received, close the fund’s bank account.
Once a fund is wound up, it can’t be reactivated.
The breakdown of a relationship between one or more members of your SMSF may affect the ability of a member to effectively undertake their trustee/member obligations. If a member chooses to leave your SMSF as a result of a relationship breakdown, their benefits must be rolled over to another complying super fund. Your SMSF does not have to be wound up, but it may need to be restructured to continue to meet the definition of an SMSF.