Trustees have responsibilities in the winding up of a Self Managed Superannuation Fund (SMSF). 

Both the Australian Taxation Office (ATO) and the Superannuation Industry Supervision Act 1993 (SISA 1993) provide guidance. Essentially all of the assets and liabilities of the fund have to dealt with i.e., no assets should remain in the SMSF and all the reporting and administration requirements need to be attended to.

In further detail:

1. Review the trust deed for information concerning the winding up of the SMSF.

2. Lodge all outstanding income tax returns and activity statements.

3. Pay all taxation liabilities and ensure all refunds from the ATO have been deposited into the SMSF.

4. Have an audit conducted by an approved auditor.  This will be required before you lodge a final income tax return.

5. Lodge the funds final income tax return - answering the appropriate questions:

5.1 Was the fund wound up during the year? Yes

5.2 On what date did the fund wind up?  Provide date between 1 July and 30 June

5.3 Have all tax obligations and lodgements been met?

6. The Trustees have 28 days to advise the ATO in writing that the Fund has been wound up.  Details to be provided include:

6.1  Name of Fund;

6.2  ABN of Fund;

6.3  Contact person and their details including name, phone and fax; and

6.4  The date the SMSF was wound up.

7. Close the bank accounts of the SMSF.  

Some common reasons why the SMSF needs to be closed include:

1. All the members have left the fund, i.e., all the benefits have been transferred to another superannuation fund.

2. The SMSF has paid the members all of their benefits.

3.  One or more of the SMSF trustee(s) have relocated overseas and the SMSF is unable to meet the definition of 'resident regulated superannuation fund'.

4. The member's balance(s) are insufficient to meet the ongoing costs of operating and administering the fund.

5. The trustees are no longer able to administer the SMSF.  This can be a common problem due to complexities of superannuation laws and regulations.