Before you submit the wind-up application to ESUPERFUND, please ensure you have completed the following steps as detailed on the Wind Up Overview page - Section 1: Prepare for Wind-up here.
- Step 1: Convert all the SMSF assets to cash
- Step 2: Cancel insurance policy held by the SMSF if applicable
- Step 3: Redirect employer contributions to another Superfund if applicable
- Step 4: Finalise Annual Compliance Requirements for the prior Financial Year if applicable
Submit a Wind-up application to ESUPERFUND
Once you have completed Steps 1 - 4 detailed above, please notify ESUPERFUND of your decision to wind up your SMSF via the Client Portal Inbox. Please select “My SMSF Details (Including Fees)” and then “Wind Up & Rollout” when you create a new query.
To allow ESUPERFUND sufficient time for processing, it is highly recommended that you plan ahead and submit applications before 31 May of the Financial Year. Applications submitted after 01 June might not be accepted.
You will need to provide ALL the following information at the same time:
1. Confirm your decision to wind up the SMSF on the Trustee Minutes.
All Trustees are required to sign the Minutes to evidence that all parties have agreed on the wind-up decision and the distribution method of Super Benefits. If you are the sole Director of your SMSF, then a Trustee Minutes is not necessary.
To download the sample Trustee Minutes, please click here.
2. Specify the Financial Year that you wish to wind up the SMSF.
You will need to ensure that by 30 June of the chosen Financial Year, your SMSF will have no assets left. Accordingly, if your SMSF still holds some assets on 30 June, you can only wind up the SMSF in the following Financial Year.
3. Specify how each Member's Super Benefits are to be paid out of the SMSF (i.e. withdraw to a personal bank account).
It is important to note that Members must meet a condition of release allowing them to access their Super Benefits before making the withdrawals. A Member has met a condition of release when:
- The Member has reached 65 years old. For more information, please click here.
- The Member is aged between the preservation age and 65 and has declared retirement with ESUPERFUND. For more information, please click here.
- The Member is aged under the preservation age, but has met a special condition of release such as having a terminal illness or permanent incapacity. For more information, please click here.
We caution that if the Member does not meet a condition of release, the Super Benefits will need to be rolled over to another complying Superfund upon winding up your SMSF. For the roll-out process, please click here.
Withdraw all your Super Benefits from the SMSF bank account prior to 30 June after paying all fees
You need to transfer all funds from the SMSF bank account to a personal bank account prior to 30 June. 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.
You are not required to leave any funds in the SMSF bank account to cover any possible Tax Liabilities for the final Tax Return.
- If the lodgement of the final Tax Return results in an Income Tax Liability, ESUPERFUND will provide you with the relevant BPAY details to arrange payment and that can be paid using your personal funds.
- Alternatively, where your SMSF is entitled to a Tax Refund, the Refund will be banked into your SMSF bank account by the ATO generally within 28 business days after the lodgement of the Tax Return. You can then withdraw the residual amount to your personal bank account.
Please note that if you reach age 60 and have declared retirement, your personal withdrawals from the SMSF are tax free in your personal tax return.
If you fail to withdraw all the SMSF Members' Super Benefits by 30 June of the Financial Year that you would like to wind up the SMSF, your Fund's wind-up application might be cancelled and you will have to lodge a normal Tax Return with the ATO.
IMPORTANT NOTE: You must keep the SMSF bank account open even if all Super Benefits have been withdrawn.
For the remaining wind-up steps, please click here to return to the Wind Up Overview page.