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

3 ways to fix Australia’s affordability crisis

Our cost-of-living pressures go beyond the RBA: surging house prices, excessive migration, and expanding government programs, including the NDIS, are fuelling inflation, demanding bold, structural solutions.

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.

How cutting the CGT discount could help rebalance housing market

A more rational taxation system that supports home ownership but discourages asset speculation could provide greater financial support to first home buyers.

Is there a better way to reform the CGT discount?

The capital gains tax discount is under review, but debate should go beyond its size. Its original purpose, design flaws and distortions suggest Australia could adopt a better, more targeted approach.

Welcome to Firstlinks Edition 648 with weekend update

This is my last edition as Editor of Firstlinks. I’m moving onto a new role though the newsletter will remain in good hands until my permanent replacement is found.

  • 5 February 2026

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. 

Latest Updates

Superannuation

Super is catching up, but ageing is a triple-threat

An ageing Australia is shifting the superannuation system’s focus from accumulation to the lifecycle of retirement. While these pressures have been anticipated for decades, they are now converging at scale and driving widespread industry change.

Investment strategies

Corporate earnings show resilience against volatility but risks remain

Evidence for a strong reporting season had been piling up for months and validated an upgrade cycle already underway. However, risks remain from policy uncertainty.

Superannuation

Want your loved ones to inherit your super? You can’t afford to skip this one step

One in five Australians die before retirement and most have not set up their super properly so their loved ones can benefit from all their hard work and savings. 

SMSF strategies

Sixteen steps in a typical SMSF borrowing

Getting a mortgage is never an easy process but when an investment property is purchased in a SMSF the complexity increases significantly. Read this before taking the plunge. 

Planning

Do HNWI get better advice?

Good advisers lead to more diversification, lower turnover and less home bias. However, studies show the average adviser may not be adding much value to clients. 

Strategy

AFL Final Ten with wildcard edit 'unlevels' the field

When the new AFL season kicks off a wild-card will be added to the finals. Is this new formula fair and how does it impact the odds of winning the premiership.

Planning

Love them or hate them, it's worth understanding annuities

Investors have historically balked at exchanging a lump sum for a future steam of income. Breaking down the financial and emotional considerations of purchasing an annuity.        

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.