We’ll help you understand the steps to winding up your self-managed super fund (SMSF) and what you can do to rollover into an APRA-regulated super fund. If you decide to move your super to another complying APRA-regulated super fund, it’s important to choose a fund that’s right for you, and consider their fees, investment options, and insurance.
Key points
Everyone has their own unique reason for winding up an SMSF
Learn the steps you can take to wind up your SMSF
We answer common questions about winding up your SMSF
Why you might wind up an SMSF
There are many different reasons you might wind up an SMSF. Here’s a quick list of some common reasons why you might decide to wind up:
You’ve experienced a change in your personal life, like becoming more time poor or having an illness or injury that prevents you from managing your fund.
Your SMSF has poor investment performance, which has resulted in large losses.
All your SMSF members have left because they joined another fund, passed away, or you’ve paid them out.
You and your trustees had a falling out or dispute.
You don’t meet the residency rules anymore, like moving overseas.
You thought creating an SMSF was a good idea at the time, but it didn’t actually meet your needs.
You might feel unprepared to run an SMSF by not having as much financial confidence as other SMSF trustees.
How to wind up an SMSF
Check your trust deed
Your trust deed is a legal document that explains how your SMSF will operate and might also help you understand what you need to do when you decide to wind up. For example, it could state that you can transfer your assets to another member instead of selling them. Or it explains how to manage your member’s benefits.
Get written agreement from all trustees
It’s generally a good idea to make sure all your trustees agree about winding up. You can organise a meeting to explain your decision and answer any questions they may have. Ask your trustees to agree to your decision in writing, which could help prevent any future disputes about winding up.
Sell your SMSFs assets
Make sure you have time to sell any assets that are part of your fund, like property or stocks. Selling your assets means you can pay your members before winding up or rolling over a member’s benefits to another fund.
Don’t forget: Consider any capital gains tax or stamp duty implications from selling your assets.
Pay any outstanding expenses
You’ll need to pay any outstanding expenses, like invoices or tax liabilities, before winding up. You can’t close your SMSF if there are remaining credit or debit balances on your account.
Finalise your tax and compliance obligations
While every SMSF is different and has unique needs, it’s important that you finalise any tax or compliance obligations you may have. You might need to submit one (or more) of the following to the ATO:
A transfer balance account report (TBAR) as soon as you stop paying your members an income stream before winding up.
A PAYG payment summary if you paid benefits to your members.
A PAYG withdrawal summary if you withheld or paid tax on your member’s benefits during the financial year.
A PAYG withholding annual report, which can help your members lodge their tax returns.
Work out and pay member benefits
You will need to pay your members their benefits before you wind up your fund. If a member meets a condition of release, they can have their benefits paid out as cash or rolled over to a complying fund. But if a member doesn’t meet any conditions of release, then you can only roll over their benefits into a complying fund.
Do a final SMSF audit
Work with an approved SMSF auditor to finish any outstanding audits you might have. This includes your final audit for the financial year you’re winding up in.
Don’t forget: You must organise your final audit before you submit your SMSF annual return.
Lodge your annual return
You’ll need to fill out certain sections on your final SMSF annual return to indicate you’re planning to wind up. The ATO will send you a letter that confirms your fund has been wound up.
Tell third parties that might be affected by the wind up
If your employer was contributing to your SMSF, then it’s a smart idea to tell them that your fund has wound up. And you could share the details of your new fund with your employer so you don’t miss out on any contributions.
You could also tell the professionals that supported your SMSF, like your tax agent or auditor, that you’ve wound up.
Close your SMSF bank account
Make sure you close your SMSF bank account after:
you’ve paid any outstanding expenses or liabilities,
the ATO has paid any final refunds to you,
you’ve organised the rollovers for your members, and
the ATO has confirmed your fund is wound up.
If you close your SMSF bank accounts early, it could delay the wind-up process.
What to consider when winding up an SMSF
Costs
There could be different costs involved when winding up your SMSF, which can add up pretty quickly. These wind-up costs will depend on your fund’s structure, your assets, and the professionals you engage with.
For example, you might pay for an approved SMSF auditor, private lawyer, or professional financial advisor to help you wind up. These are extra costs that you’ll need to budget for. And if you sell your assets, then you might need to pay capital gains tax (CGT) once they’re sold.
Time
The time it takes to wind up your SMSF depends on a few factors, like having your accounts in order and not experiencing any compliance issues. When it comes to the specifics, the time required can vary, but it typically takes three to six months.
Your assets
Selling and transferring your assets is one of the key steps you need to take when winding up. But it could easily become the most time-consuming task if you’re unprepared.
When you sell your assets, they need to be sold at the market value. So, you might need to do a market valuation of your assets to work out the actual market value before selling.
You could speak to a financial advisor or accountant if you need support working out how best to sell or transfer your assets.
Super helpful next steps
Once you've wound up your SMSF, you'll need to decide where your balance and savings will go. You could consider a fund like us, where we offer indexed investment options that cover conservative, balanced and high-growth portfolios so you can choose the right investment approach for your savings.
You could be eligible for appropriate insurance when you join a regulated fund, like us. Remember, your previous insurance cover will end and your eligibility, cover levels, and terms will vary and could be assessed by an insurer.
Generally speaking, you’ll need to sell or transfer your assets, including property, before winding up your SMSF. And you’ll need to make sure all member balances are paid or rolled over, so your SMSF balance is zero before you can wind it up.
Yes, you need to complete and lodge one last audit of your SMSF before winding up. You must do this before you submit your final SMSF annual return.
No, you can’t wind up if there are any outstanding expenses or liabilities, including overdue tax returns.
No, you can’t reopen your SMSF once you’ve wound up. But you can open a super account with a complying fund if you’re looking to take that next step
Yes, you can wind up your SMSF when it’s in the pension phase. But you need to have no money left in your SMSF before winding up. The good news is that you can open a Retirement Income Account with a regulated fund to help you manage your super during retirement.
Yes, you can have an SMSF and another super account active at the same time. But you could be paying multiple sets of fees to keep both accounts open, so it might be worth it to consider combining them into one account.[C1]
Where to next
[C1] Before consolidating, consider if this is right for you, including the loss of any insurance cover from your other funds, the impact on your investments, and potential tax implications and read the PDS and TMD at aware.com.au/pds. You may wish to speak with a qualified financial planner before making this decision.
[M4] Aware Super internal data as at 30 June 2026. This excludes Investment Funds clients.