How much does it cost to close an SMSF?

It costs $1,500 plus GST to close your self-managed super fund (SMSF), on top of any outstanding accounting/audit work for any years not completed.  This covers the additional work the accountants need to complete to ensure that everything is ended correctly with the tax office and other government bodies.

For more information about the wind-up process checkout our page on SMSF Wind Ups.

Considerations when winding up your SMSF

1. Stopping direct debits for life insurance premiums
2. Stopping direct credits for employer contributions
3. Ensure all tax obligations for the fund are met
4. Ensure all fund expenses are paid including prepaying accounting and audit fees for the preparation of the final accounts
5. Varying PAYG instalments as required
6. Liquidating wraps and platform investments and other fund assets
7. Reporting on tax allocations in relation to wrap or platform investments will not be received until a few months after the end of the financial year
8. Any existing reinvestment plans for share holdings or unit trusts – ensure they have been cancelled or received
9. Have all dividends and trust distributions been received
10. Do you have a condition of release?
11. How are the member benefits to be paid or rolled over?
12. Should you rollover your super to a retail or other fund?
13. Can any assets be transferred to a member as an in-specie payment?
14. Tax effect of disposing of assets
15. How are pensions to be treated and does the fund need to prepare a TBAR?
16. Have the pension minimum payments been made?
17. Is your fund setup to make rollovers using SuperStream?
18. Rolling over most of the member’s balances prior to 30^th June and then do a wash up rollover in the new year
19. Liquidating lumpy assets such as property or private unit trusts
20. Notify the ATO within 28 days of the date a fund is wound up – usually done when the final tax return is lodged
21. The fund is not wound up until the final tax return has been lodged
22. The ATO will then cancel the fund’s ABN

Practical issues in relation to winding up an SMSF include:

• final calculation of the tax payable or tax refund
• tax statements in relation to trusts are typically received months after the end of the financial year
• interest or fees on the fund’s bank account continue to accrue until it is closed but are also required to be considered for tax purposes
• ensuring the bank account remains open to receive distributions which are receivable at 30^th June, or a tax refund is received
• retain sufficient cash to meet final wind-up expenses and possibly retain on trust by the trustee to enable the fund’s bank account to be wound up
• deregister the fund’s corporate trustee (if applicable)

We can assist with the wind-up process for your SMSF by handling paperwork, preparing final financial statements and the annual return, arranging the final audit, and addressing outstanding tax obligations and ASIC obligations for corporate trustees.

ATO on Wind Ups

The Australian Taxation Office also provides a comprehensive guide to wind up an SMSF:

• ATO guide to wind-up an SMSF