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

Australian stocks will crush housing over the next decade, 2025 edition

Two years ago, I wrote an article suggesting that the odds favoured ASX shares easily outperforming residential property over the next decade. Here’s an update on where things stand today.

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.

Property versus shares - a practical guide for investors

I’ve been comparing property and shares for decades and while both have their place, the differences are stark. When tax, costs, and liquidity are weighed, property looks less compelling than its reputation suggests.

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.

Latest Updates

Investment strategies

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.

Investment strategies

21 reasons we’re nearing the end of a secular bull market

Nearly all the indicators an investor would look for suggest that this secular bull market is approaching its end. My models forecast that the US is set for 0% annual returns over the next decade.

Property

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.

Investment strategies

Market entry – dip your toe or jump in all at once?

Lump sum investing usually wins, but it can hurt if markets fall. Using 50 years of Australian data, we reveal when staging your entry protects you, and when it drags on returns. 

Investment strategies

The US$21 trillion question: is AI an opportunity or excess?

It has been years since the US stock market has been so focused on a single driving theme, and AI is unquestionably that theme. This explores what it means for US and global markets in 2026.

Economy

US energy strategy holds lessons for Australia

The US has elevated energy to a national security priority, tying cheap, reliable power to economic strength, AI leadership, and sovereignty. This analyses the new framework and its implications for Australia.

Strategy

Venezuela’s democratic roots are deeper than Trump knows

Most people know Maduro was a dictator and Venezuela has oil. Few grasp the depth of suffering or the country’s democratic history - essential context as the US ousts Maduro and charts Venezuela’s future. 

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.