If an SMSF is no longer suitable or required there are a number of considerations that have to be taken into account before it is wound up.
The ATO advises taxpayers that the key considerations and tasks involved in winding up their SMSF, include:
- Before lodging their final SMSF return, they need to dispose of assets and pay out (where a condition of release has been met) or rollover all member benefits, leaving a sufficient amount to pay any final tax or other expenses.
- Once the final SMSF return has been processed, all remaining member benefits (including any refund received from the final return) must be paid out or rolled over within 28 days of lodging the final return.
- All rollovers involved in winding up an SMSF must be done via ‘SuperStream’ on the ATO’s website.
- The fund’s ABN should not be cancelled after the final SMSF annual return has been lodged. Once the ATO has processed the final SMSF annual return, it will confirm the fund has been wound up by sending the trustee a letter stating the ATO has cancelled the fund’s ABN, and closed the SMSF’s records on the ATO’s system.
Taxpayers can refer to the ‘Winding up checklist’ on the ATO’s website for further assistance
in winding up their SMSF.
If you are thinking about whether or not to continue using your SMSF in the future, please make sure to get advice BEFORE doing anything further – it’s good insurance against costly financial mistakes.
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