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.
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| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Row Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.74% p.a. | 6.76% p.a. | $3,240 | Principal & Interest | Variable | $null | $230 | 70% |
| Promoted | Disclosure | |||||||||||
6.99% p.a. | 7.04% p.a. | $3,323 | Principal & Interest | Variable | $0 | $220 | 70% | Disclosure | |||||||||||||
7.44% p.a. | 7.49% p.a. | $3,476 | Principal & Interest | Variable | $395 | $null | 60% | ||||||||||||||
7.49% p.a. | 7.54% p.a. | $3,493 | Principal & Interest | Variable | $0 | $221 | 80% | Disclosure | |||||||||||||
7.00% p.a. | 7.41% p.a. | $3,327 | Principal & Interest | Variable | $30 | $825 | 80% | ||||||||||||||
6.84% p.a. | – | $3,273 | Principal & Interest | Variable | $0 | $995 | 80% | ||||||||||||||
7.24% p.a. | 7.26% p.a. | $3,407 | Principal & Interest | Variable | $0 | $230 | 80% |
| Promoted | Disclosure |
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:
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Do I have a good knowledge of trustee responsibilities and obligations?
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Do I have the time to run the SMSF?
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Are SMSF running costs more than I want to pay, or would another super fund cost less?
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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?
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Do I still want the responsibility of running the fund, including paying fines if things go wrong?
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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.
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Check the trust deed for any wind-up instructions. All Trustees or directors should agree about the wind up and document their decision.
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Pay out or rollover the balance of members’ super to another fund, which may involve selling assets.
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A final audit must be completed before you lodge the last SMSF annual return. Appoint an SMSF auditor to complete the final audit
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Complete and lodge the final SMSF annual return (including wind up details)
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After all expected liabilities have been settled and requested refunds are received, close the fund’s bank account.
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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
Harrison Astbury
Harry O'Sullivan
Emma Duffy
William Jolly
