Closing down a self-managed superfund
In recent years, there’s been a surge in seniors looking to close down their self-managed super funds (SMSF). The overarching reason is that a SMSF takes a lot of work. Even when they’re set up with the best intentions, the time commitment required can becomes stressful and burdensome — sometimes, it takes years to realise that. If you’re looking for an exit, we’ve laid out the simplest way to safely and efficiently close your SMSF.
Before we jump in, it’s best to start planning the closure as soon as possible. It’ll work in your favour if you do this early in the financial year. That way, you won’t feel rushed throughout the process and will have ample time to prepare, as well as tie up any loose ends.
1. Allocate a place for your money.
The first step takes a “begin with the end in mind” approach. When you close your SMSF, you’ll need to reallocate your funds in a new managed super so you can access them. So, decide where your money will go. As there are a lot of options available, we suggest getting financial advice so you can make an informed decision. Not all funds will be suitable for you, but a financial adviser will be able to suggest a couple of great options to choose from.
2. Determine where fund assets will go.
You’ll either want to distribute or liquidate your fund assets. Some funds will allow you to transfer listed assets from your old fund to your new one (another reason why we suggest seeking financial advice). Just be prepared to give the sell down some thought if the fund contains illiquid investments — such as delisted shares.
3. Have an accountant organise the shutdown.
Your chosen accountant will draft rollover benefit statements and organise the shutdown on your behalf. Additionally, you won’t miss any important requirements when it comes to tax matters, such as GST, PAYG, tax return audits, and so on.
Ascent can help with the process of shutting you SMSF down, completing forms and updating the Tax Office. If you require financial advice we can refer you to advisors to help.
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Buying and selling property rarely lines up perfectly. The logistics of it all can be incredibly stressful. If you’ve found the perfect next home but haven’t sold your current one yet, a bridging loan can make your move easier, without having to wait on your current property sale. What is a bridging loan? A bridging loan is a short-term loan that gives you the funds to buy a new property before your current property has sold. It’s designed to bridge the gap between buying and selling. These loans are generally interest-only and are typically offered for up to 12 months, giving you time to sell and settle on your current home while already owning the next one. When would I need a bridging loan? You might consider bridging finance if: You’ve found your next home but haven’t yet sold your current one. You want to avoid renting or moving twice between sales. You want more time to prepare your home for market to get the best sale price. You're building a new home while still living in your existing one. How does it work? Peak Debt: The lender combines your current mortgage, the cost of the new property (including stamp duty and legal fees), and any interest (if it’s being capitalised). This total is known as your Peak Debt. Interest Only: During the bridging period, you’ll typically pay interest only — or the interest may be capitalised (meaning it’s added to your loan rather than paid upfront). Sell Your Property: Once you sell your existing home, the sale proceeds are used to reduce your Peak Debt. End Debt: The remaining balance becomes your End Debt, which then continues as a standard mortgage. An example of a bridging loan. Your current home loan = $200,000 New home = $800,000 Total bridging loan (Peak Debt) = $1,000,000 After selling your home for $600,000, that amount is used to pay down your loan Remaining loan (End Debt) = $400,000 Things to consider. Like any major financial decision, it’s important to understand all the moving parts before you commit. Time pressure: You typically have 6–12 months to sell. If you don’t sell in time, the lender may step in to sell the property and/or charge default interest. This is an extra interest rate that a lender charges when you fail to meet your loan obligations — in this case, not selling your property within the agreed timeframe. Interest costs: If interest is capitalised, it means you're not making repayments during the loan period, so the interest gets added to the loan balance instead of being paid separately. This means your loan grows each month. Making even small repayments can help keep this under control. Equity & serviceability: Lenders will assess how much equity you have and whether you can manage the loan during the bridging period. Loan-to-value ratio: If your End Debt ends up being more than 80% of the new property’s value, you may have to pay Lenders Mortgage Insurance (LMI). Existing loan setup: If your current lender doesn’t offer bridging loans, refinancing may be required — sometimes triggering break fees if your existing loan is fixed. This means you may have to pay a penalty if you end a fixed-rate home loan early (before the agreed term is up). Is a bridging loan right for you? That’s the big question. Bridging finance can offer flexibility and peace of mind, helping you move forward with confidence rather than being held back by uncertain sale timing. But it’s not without risk or cost — so it’s vital to understand the structure, timeframe, and repayment expectations. If you’re considering your next property move and want tailored advice on whether bridging finance suits your situation, talk to the team at Ascent Property Co. or Ascent Accountants. We can also put you in touch with finance brokers to discuss what is best for you.
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