Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Register

12 November 2026

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

Firstlinks is sponsored by:
banner

Most viewed in recent weeks

Division 296: the initial moves to make before the windows close

What if the best superannuation strategy isn't about earning more, but acting before your options disappear? Several overlooked planning windows are narrowing, with consequences that can last for decades.

The retirement scorecard: how many of these questions can you answer?

From the maths of retirement, estimating spending and picking the right asset allocation to survive a poor decade, here are the questions every retiree – current or future – should be able to answer for themselves.

Testamentary trusts: Treasury has picked the wrong reading

A decades-old estate planning tool has survived one tax crackdown only to be caught by another. The surprise isn't who the reform is targeting, but who could end up paying the price for drafting choices made years ago.

Superannuation’s structural failings

Politicians are fighting over access to super, but they may be arguing about the wrong thing. The system’s three fundamental flaws have been hiding in plain sight for decades, costing Australians far more than they realise.

Avoid unnecessary CGT with this estate planning clause

A simple estate plan can create a ticking time bomb. One overlooked clause can pit spouses against children, delay inheritances, and potentially leave a family facing an unexpected tax bill worth hundreds of thousands of dollars.

Higher yields are creating opportunities in global bonds

Bond markets are adjusting to a new reality, but not in the ways investors expect. With markets repricing and capital competing for attention, investors may need to rethink where resilience and opportunity lie. 

Latest Updates

Retirement

The retirement account that Australia should have

Our retirement system asks one account to do two very different jobs. A dedicated "rainy day" account separating income from emergency savings could deliver better outcomes and greater peace of mind for retirees.

Investing

What the US midterm results mean for investors

Democrats have regained control of Congress, changing the equation in Washington. Whether that proves positive for investors will depend less on the result itself and more on what happens next for growth and markets.

Taxation

Should the capital gains tax reward risk?

A reader query on the recent CGT reforms has revealed a bigger issue. One overlooked feature of the old system may have done more than compensate for inflation. As we move to indexation, are we forgetting to reward risk?

Investment strategies

Bonds: The income and diversification trade-off

Rising yields have made bonds attractive again, but that does not mean they will behave as expected. As inflation, fiscal pressures and geopolitical risks reshape markets, the role of bonds may be more complicated than it appears.

Investment strategies

Why high-dividend investing deserves another look

Income investors have endured several lean years, but signs of a recovery are emerging. As opportunities improve, investors face an important choice between chasing headline yields and building a reliable source of income.

Investment strategies

Why 'overvalued' has been such an expensive word

Investors love simple rules, especially when markets appear stretched. Yet some of the strongest returns have arrived when the outlook seemed least attractive. This leaves an important question that history struggles to answer.

Investment strategies

AI – A good kind of bubble or just a bubble?

Investor obsession with AI is attracting unprecedented amounts of capital and confidence. But beneath the excitement lies uncertainties about returns, funding and risks that enthusiasts may not be paying enough attention to.

Sponsors

Alliances

  • ASA-Logo-RGB-ActiveGreen-web.png

Site Map

About Firstlinks

© 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.