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18 Comments

  1. Amanda

     /  February 2, 2019

    Hi there,

    We are thinking of closing down our SMSF and was wondering if the liabilities such as CGT and Accounting Fees can be paid from our personal account instead of the SMSF account so that we can close the account ASAP and can we receive our refunds from ATO back to our personal account as well.

    Secondly, we are in a pension phase and thinking of a rollover to an Accumulation phase in an industry super. Does this mean that we do not have to do a full draw down for our SMSF and it can be pro-rata?

    Thanks for your time.

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    • Sorry Amanda but that is very specific advice you need which I can’t provide on here. In general though if you are in Pension phase there should be no CGT. The SMSF tax refund can be paid to the accountant’s trust account and they can take their fees from there before making a final payment to the members as a lump sum commutation but only if the members have met a condition of release.

      By rolling over a pension to accumulation the members are commuting the pensions so they must take at least the pro-Rata minimum pension for the year to date. If you are asking if all the funds have to be rolled to the industry fund then the answer is no if you have met a condition of release.

      Please seek good advice before acting and on’t forget to read your trust deed to check any process in their for closing your fund.

      We manage and guide the closure of many funds with Client’s accountants when no longer suitable and help people move to industry or retail funds. You just need to know your options follow the process. Please be careful with short-cuts as the penalties are high now.

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  2. Doug

     /  January 20, 2019

    Hi.
    We have SMSF with my wife as the member and both of us as trustees. She has reached age pension age and will be applying at Centrelink for it soon. I already received the age pension. When we put down on our assets on Centrelinks assets form, will the amount in the SMSF be allocate solely to my wife or to the two of us? If it is allocated only to her, would it not be better for us to close the SMSF and put the money into the bank under both our names for re-organising at a later date.
    Thanks
    Doug

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    • Hi Doug, the SMSF balance is allocated to each member according to their own account balances and Centrelink use the same allocation. Now that your wife has reached Age Pension age her super will now also count when Centrelink review your Age Pension. You should go and see a Centrelink Financial Information Service Officer on 132 300 to see how your entitlements are affected. Read more here about this service https://www.humanservices.gov.au/individuals/services/financial-information-service

      Once you are aware of how your Age Pension is affected you might then want to get some advice on your options. you should not taker any money out of superannuation or close your SMSF until you are sure of the effects.

      Best wishes

      Liam

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  3. Fred

     /  December 5, 2017

    Hi,
    I am looking at winding up my SMSF which holds one investment property supported by a mortgage. What are my options with the property please? Ideally I would like to keep it, since if it was sold, I would lose a considerable amount of money as the house prices have dropped here in WA since it was bought.
    Thnx, Fred>

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    • Hi Fred, you should get personal advice on this question as complicated. In general a person would need to buy the property from the SMSF at market value and clear the SMSF debt. If a person(s) is in pension phase then they could consider a lump sum commutation of the property to the member(s). So the fund basically pays out the asset as a benefit to the member(s) at market value. You should check for stamp duty concessions under the 2008 Duties Act in WA which may be favourable to you. Otherwise a person would need to buy or borrow to buy the property from the fund at market rates. Please do seek specific advice. If you are living in WA I would recommend Con Gotsis at http://pascoepartnersaccountants.com.au as a first port of call. If he can’t help you he will know someone who can as he runs the SMSF Association Local Community in WA.

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  4. Huw

     /  November 23, 2017

    Hi Liam,

    I am a SMSF novice but finding your site useful guidance. When closing down the property fund, can we move into the property & transfer an “equivalent” cash value into super and not incur stamp duty?

    Rgds

    Huw

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    • Hi Sheila

      Thanks for the great feedback

      So you would be effectively buying the property from the fund. Stamp duty will be payable in some states so you should check with your accountant and conveyancer to check what is the rule in your state. If you want expert legal opinion then let me know which state you are in and I will point you to the right person.

      Liam

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  5. Richard Dodd

     /  September 18, 2017

    Hi – we are approaching the stage where we wish to close down the SMSF as we plan on travelling the next few years and won’t have the time to manage it. We are both in the TTR stage with the SMSF and taking out the minimum, and as we also currently work we have separate super funds which are in the accumulation phase. These individual super fund the insurance requirements so we don’t wish to close them out. The question is – are we able to open a “new” super fund – which will be in both our names – as retain the TTR status and payments yet keep the individual super funds.
    Thanks and Regards

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    • Hi Richard, you cannot open a non-smsf account for super in joint names. You can however each open a seperate TTR pension account and keep your other accumulation accounts open. If you plan to travel see if you can trigger a general condition of release such as leaving one employer after age 60 in order to move from TTR to a full tax free Account based pension. Seek personal advice

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  6. Rob O'Donnell

     /  January 25, 2017

    Hi Liam, I presume at step 6 you get the bank account to a zero balance even though it remains open? The accountants I work with want a closed account to prepare final accounts from.

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    • Hi Rob

      Yes I believe it is often preferable to have the bank account closed especially if the final tax return is expected to be a refund. The refund can be paid to the Accountants trust account normally.

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  7. Nick Sumbeiywo

     /  November 6, 2015

    What if members have met a condition of release and wish to transfer shares in the SMSF to their individual names when they wind up? Do they still have to convert the shares to cash first?

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    • Hi Nick

      In general if a member has met a full condition of release they can take a lump sum payment in the form of an in-specie transfer of shares from the fund before winding it up. You cannot take them as a regular pension payment so the lump sum is the only option. Otherwise if you are winding up the fund you could look for a Super or Pension Wrap that will accept the in-specie rollover of the shares from the SMSF. You should see personal tax and financial planning advice to address your personal circumstances and always talk to your Share Broker beforehand to assess their charges as they often charge $55 per transfer but you can often negotiate for multiple transfers.

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  8. I find that listed/public unit trusts can often cause admin issues with winding up SMSFs. Trustees will understandably want the fund wound-up before the end of the financial year so as to not pay an extra years supervisory levy and other costs, but the tax statements for unit trusts or wrap accounts holding unit trusts aren’t available until August/September the following financial year. Planning for winding-up a SMSF should start well ahead of the planned wind-up date.

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    • Good point Luke. As most people are choosing when to wind up a fund rather than it being forced, my suggestion would be to redeem any unit trusts in this financial year and wind up the fund at then end of the following year. This will save on Accounting costs of doing interim accounts.

      Thanks for the input.

      Liam

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