The decision to wind up an SMSF is one that should not be taken lightly.
Based on the latest ATO statistical data, 2017-2018 was the highest year on record for wind-ups with approximately 22,700 SMSFs winding up. We know that traditionally, we see a spike in SMSF wind-ups at financial year-end and 2017-18 year was no exception with approximately 46% of total SMSFs wound up that year, taking place in the June quarter.
What differentiates the 2017-18 year was the unusual peak in SMSFs (approximately 40%) winding up during the first quarter of that financial year. This unusual activity is likely to be attributed to the significant superannuation reforms which took effect on 1 July 2017.
Will COVID-19 and the impact it’s had on the value of superannuation assets see another spike in wind-ups, particularly for some smaller SMSFs?
This edition of Technically Speaking, written by the Association’s Technical Manager, Mary Simmons, covers:
- Is winding up an SMSF the right decision?
- What is involved in winding up an SMSF – including tips and traps
- Record keeping and lodgement obligations
- Handy checklist of the main matters that need to be addressed when winding up an SMSF.
The contents of this resource are taken to be correct at the time of publication.
Disclaimer: Technically Speaking bulletins contain general advice only and are prepared without taking in to account particular objectives, financial circumstances and needs. The information provided in this bulletin is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to the individual circumstances of your client. While the SMSF Association believes that the information provided in this bulletin is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001. © SMSF Association