Questions & Answers - Wind Up

No New Applications from 03 June 2024: We advise that new 2024 FY windup applications are no longer accepted by ESUPERFUND from 03 June 2024 if at least one member needs to rollover super benefits from the SMSF to another superfund given the inadequate time left to calculate the member balance available for rollout before 30 June 2024. New windup applications for the 2025 FY will be accepted from 01 July 2024.

Important Note: We advise that from 1 October 2021, you are required to comply with the SuperStream Standards when you wish to rollover funds from your SMSF to other Superfund, which includes when you are winding up your SMSF. SuperStream is a data and payment standard used for digital transactions within the super industry.

We are currently updating the contents of our website to reflect these changes related to the new SuperStream Standards. In the meantime, if you wish to wind up your SMSF by transferring your super benefits from the SMSF to other Superfund, please confirm the process with ESUPERFUND via the client portal inbox.

However if you wish to wind up the SMSF by withdrawing all your super benefits given you have met a condition of release, the wind-up process detailed on this page is still accurate and you may follow the process accordingly.

+ What are the costs involved to wind up my SMSF?

ESUPERFUND charges (incl. GST) to wind up an SMSF (i.e. to close down your SMSF). The Wind Up Fee is payable in addition to the ESUPERFUND Annual Compliance Fee for attending to your SMSF's Final Year Compliance Requirements.

For more information on ESUPERFUND’s Fee Schedule, please click here.

+ Do I have to notify the ATO of my intention to wind up my SMSF?

No. ESUPERFUND will lodge a final Tax Return after the Financial Year end to notify the ATO that your SMSF is being wound up during the previous income year.

+ When can I close the SMSF’s bank account?

You cannot close your SMSF’s bank account until the final Tax Return is lodged and all expected final tax liability/refund (if any) have been settled with the ATO.

+ When can I deregister the Corporate Trustee Company?

You cannot deregister the Corporate Trustee until the final Tax Return is lodged with the ATO. For the detailed information regarding the process to deregister a Corporate Trustee Company, please contact the ASIC directly on 1300 300 630.

+ Can I re-activate my SMSF after it is wound up?

No. Once your SMSF is wound up, it cannot be re-activated. This means that you will have to establish a new SMSF if you wish to manage your super in the future.

+ How long does it take for ESUPERFUND to prepare a Rollover Benefits Statement?

The average processing time for the Rollover Benefits Statement is at least one month upon the receipt of all the requested information and provided that your SMSF has no outstanding tax returns for any prior income years. Failure to complete the required steps and provide the requested information may increase the preparation time of the Rollover Benefits Statement.

+ In the case of a rollover, who will arrange the transfer of my Super Benefits from the SMSF to the new Superfund?

As the Trustee, you will need to arrange the transfer of your Super Benefits from the SMSF bank account to the new Superfund by yourself. Please note that ESUPERFUND does not have transaction access to your SMSF bank account and therefore we are unable to make the transfer on your behalf.

+ Can I transfer my Super Benefits to the next Superfund via Electronic Funds Transfer (EFT) instead of a cheque?

You will need to contact the Receiving Fund to confirm whether they can accept the EFT method.

+ Do I need to leave some funds in the SMSF bank account to cover any possible tax liabilities for the final Tax Return when rolling out my Super Benefits?

No. When preparing the Rollover Benefits Statement for you, ESUPERFUND will calculate the estimated tax liability for your SMSF’s final Tax Return and instruct you to pay the estimated tax liability (if any) to the ATO in advance.

+ Do I have to meet the minimum pension payment requirement before rolling out my Super Benefits to another complying Superfund?

Yes. You have to make enough pension withdrawals from your SMSF bank account to enable you to meet the minimum pension payment requirement before rolling out your Super Benefits.

+ Can I withdraw my Super Benefits directly rather than roll-out?

If you meet a condition of release, you can choose to withdraw your Super Benefits directly. For more information on accessing your Super Benefits and the tax implications depending on your age and the withdrawal type, please click here.

We caution that if you do not meet a condition of release, your Super Benefits can only be rolled over to another Superfund.

+ Can I in-specie transfer out the assets held by my SMSF rather than converting all assets to cash?

No. Clients of ESUPERFUND are not allowed to in-specie transfer out the assets held by the SMSF during the wind-up process. The complexity involved is outside the scope of our offering.

+ How long does it take for ESUPERFUND to prepare the final Annual Tax Return? When can my final Annual Tax Return be done?

The final Tax Return can only be electronically lodged with the ATO after the Financial Year has been concluded (i.e. after 30 June).

In order for ESUPERFUND to prepare the final Tax Return and Audit for your SMSF, you will be required to complete and submit an Annual Checklist. You will be notified via the Client Portal Inbox once the Annual Checklist is released in your Client Portal Inbox. The time frame required to finalise the final Tax Return is around 3-4 months from the day you submitted the Annual Checklist.

+ When can I receive the refund from the ATO if my SMSF is entitled to an income tax refund?

The refund will generally be issued by the ATO within 2-4 weeks after the lodgement of the final Tax Return.

+ What should I do if my SMSF received some additional income (e.g. interests / dividends) or ATO refunds after the SMSF has wound up on 30 June?

Any additional income or ATO refunds received after 30/06/2021 will not affect your SMSF's wind-up process.

The remaining funds should be rolled out or paid out as soon as possible. An additional Rollover Benefits Statement will be prepared for you when finalising your SMSF’s final Tax Return if you do not meet a condition of release to withdraw the remaining funds.

+ Can any unused Capital Losses be transferred to the next Superfund?

No. Capital Losses are trapped within the trust structure of the SMSF and cannot be transferred or distributed out of the SMSF. Any unused Capital Losses of the SMSF will therefore be lost upon winding up your SMSF.

+ What should I do if my SMSF holds suspended / delisted shares?

It should be noted that the shares cannot be written off unless the shares are disposed or a loss declaration is issued. The SMSF is unable to wind up until the share value becomes nil and there is no expectation that any dividends would be paid.

Accordingly you should contact the administrator or the company holding your shares to ascertain the current value of your shares.

Alternatively, you may contact the associated share registry to transfer the shares to your personal account at market value and deposit the proceeds into your SMSF bank account.

+ I have previous informed ESUPERFUND to cancel / wind up my SMSF and now I have changed mind since I don’t want to dispose of my SMSF shares. Can I maintain my SMSF?

Yes. Please contact our office via the Client Portal Inbox if you decide to withdraw your wind up application. In this case, your SMSF will be required to lodge a normal Annual Return for the current Financial Year as well as for future Financial Years. You will be required to pay any outstanding Annual Compliance Fee before we can re-instate your SMSF. In addition, if you have already rolled over / withdrawn your Super Benefits, you will need to re-activate your SMSF via contributions (subject to normal contribution rules) / rollovers.