When you first set up an SMSF it is generally because it meets your needs at that time, but that can change, necessitating a ‘wind up’.
As your life situation changes, you may need to change or wind up your SMSF. You should regularly review your circumstances and decide whether to continue with your SMSF - or if you should wind it up. Maybe you’re going through a divorce, a trustee dies, or trustees fall out with one another, or you move overseas … or you simply don’t want to self-manage your super anymore. There are all manner of reasons to wind up an SMSF, and most come down to personal decisions.
Looking to take control of your retirement? This table below features SMSF loans with some of the most competitive interest rates on the market.
|Advertised rate||Comparison rate||Monthly repayment||Rate Type||Offset||Redraw||Ongoing Fee||Upfront Fees||LVR||Lump Sum Repayment||Additional Repayments||Pre-approval|
|FEATUREDSELF MANAGED SUPER FUND LOAN|| |
SMSF 80 Fixed 5 Years (Purchase) (New Customer)
Liberty SuperCredit SMSF (LVR < 60%)
- Easy refinance process
- No application fee and no settlement fee
- No monthly, annual or ongoing fees
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given Rates correct as of October 23, 2021. View disclaimer.
What to consider when winding up an SMSF
There are a few scenarios and lingering questions that could trigger a trustee wanting to wind up their SMSF:
Do I have a good knowledge of trustee responsibilities and obligations?
Do I have the time to run the SMSF?
Are SMSF running costs more than I want to pay, or would another super fund cost less?
Am I able to continue managing the fund’s investments effectively, or would I get higher returns if my super was managed in another type of fund?
Do I still want the responsibility of running the fund, including paying fines if things go wrong?
Do all trustees still agree on how to manage the fund?
How to wind up your SMSF
If an SMSF is no longer for you, these are the steps towards winding it up.
Check the trust deed for any wind-up instructions. All Trustees or directors should agree about the wind up and document their decision.
Pay out or rollover the balance of members’ super to another fund, which may involve selling assets.
A final audit must be completed before you lodge the last SMSF annual return. Appoint an SMSF auditor to complete the final audit
Complete and lodge the final SMSF annual return (including wind up details)
After all expected liabilities have been settled and requested refunds are received, close the fund’s bank account.
Pay any outstanding tax and other debts before you close your fund’s bank account.
Alternatives to winding-up
If you want to keep going with an SMSF, but can’t manage the duties and responsibilities, you could change to a different type of fund where a licensed trustee takes over the obligations. This would come at a cost, but the time savings may be worth it to you. Savings.com.au advises to speak to an SMSF professional about other types of super funds. They can also help you decide if an SMSF is still right for you.
Image by Joshua Hoehne via Unsplash