Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 187

10 tips for winding up an SMSF

There are many reasons why an SMSF may need winding up, such as due to the death or incapacity of a member or lack of desire to continue with the administration, responsibility or expense.

The process of winding up an SMSF can be complicated and trustees may not be aware of all the steps involved.

The following 10 tips will allow for a smoother audit process for SMSFs:

  • Ensure the decision and the date of the wind-up are documented. All trustees/directors need to be aware of the situation and this is usually recorded by drafting minutes of the decision and having all trustees/directors sign the minute.
  • Ensure no income or contributions are received after the date of winding up.
  • If benefits are being paid to the member, dispose of all assets including any fixed interest investments and ensure the bank account remains open.
  • In the case of an in-specie transfer, ensure that investments are transferred at market value. It is also important to ensure that valuations are obtained for any related party investments.
  • Pay any known SMSF expenses and provide for anticipated expenses, including any income tax payable, prior to winding up.
  • Calculate any income tax receivable and document as a receivable in the financial statements. Ensure the closing net asset position of the fund is nil as at the date of wind-up.
  • Document any benefit payments, including evidence of how a ‘condition of release’ was met.
  • Obtain a copy of the members’ benefit statement and instructions for all benefits rolled over. For audit purposes obtain confirmation the rollover was received by the receiving superannuation fund(s).
  • Obtain a copy of the bank statements for the year of audit and up until the date the bank account was closed.
  • Ensure the notes to the financials document the fund as a not going concern for the year of wind up.

 

Jo Heighway is a Partner, SMSF Assurance & Advisory, at Deloitte Touche Tohmatsu. This article is for general information and does not consider the circumstances or investment needs of any individual.

  •   25 January 2017
  • 1
  •      
  •   

RELATED ARTICLES

Avoid these top five errors in your SMSF annual return

Every SMSF trustee should have an Enduring Power of Attorney

7 vital steps to compliance for your SMSF

banner

Most viewed in recent weeks

Building a lazy ETF portfolio in 2026

What are the best ways to build a simple portfolio from scratch? I’ve addressed this issue before but think it’s worth revisiting given markets and the world have since changed, throwing up new challenges and things to consider.

Get set for a bumpy 2026

At this time last year, I forecast that 2025 would likely be a positive year given strong economic prospects and disinflation. The outlook for this year is less clear cut and here is what investors should do.

Meg on SMSFs: First glimpse of revised Division 296 tax

Treasury has released draft legislation for a new version of the controversial $3 million super tax. It's a significant improvement on the original proposal but there are some stings in the tail.

Ray Dalio on 2025’s real story, Trump, and what’s next

The renowned investor says 2025’s real story wasn’t AI or US stocks but the shift away from American assets and a collapse in the value of money. And he outlines how to best position portfolios for what’s ahead.

10 fearless forecasts for 2026

The predictions include dividends will outstrip growth as a source of Australian equity returns, US market performance will be underwhelming, while US government bonds will beat gold.

13 million spare bedrooms: Rethinking Australia’s housing shortfall

We don’t have a housing shortage; we have housing misallocation. This explores why so many bedrooms go unused, what’s been tried before, and five things to unlock housing capacity – no new building required.

Latest Updates

Economy

Making sense of record high markets as the world catches fire

The post-World War Two economic system is unravelling, leading to huge shifts in currency, bond and commodity markets, yet stocks seem oblivious to the chaos. This looks to history as a guide for what’s next.

Australia’s generous housing subsidies face mounting political risk

Mark Carney has spoken of a rupture in the rules based system that has governed the world since 1945. That rupture means nations like Australia will need to boost defence spending and find savings elsewhere.

Shares

Finding yield on the ASX

With ASX dividend yields now below government bond yields, investors face an upside-down market where income is scarce, growth is muted, and careful selection of bond-like stocks has never mattered more.

Investment strategies

Digging for value among ASX miners

ASX miners are back in favour after playing second fiddle to banks for years. Is it too late to get in? Here are some thoughts on the large caps such as BHP and Rio, and the hot gold mining sector.

Gold

It’s economic reality, not fear-based momentum, driving gold higher

Most commentary on gold's recent record highs focus on it being the product of fear or speculative momentum. That's ignoring the deeper structural drivers at play. 

Investment strategies

Asia in 2026: Riding AI, reform and a shifting global order

Tariff turmoil tested Asia, but AI leadership, policy easing and reform momentum are restoring investor confidence and strengthening the region’s outlook for 2026. 

Investment strategies

Investors beware: Bull markets don’t last forever

New research explains why high valuations, low dividends and bullish sentiment rarely coexist with strong long-term returns after extended bull markets. 

Sponsors

Alliances

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.