There can often be instances where an SMSF that's been wound up receives a payment or refund however has no bank account to deposit it into as the bank accounts of the SMSF have been closed.
Payments of this nature could include:
ATO income tax refunds;
GST or other activity statement refunds;
Low Income Super Contribution (LISC) amounts;
Co-contribution amounts;
Superannuation Guarantee Charge remittances;
Delayed or late investment income payments (dividend / distributions etc);
Compensation payments;
Capital payments from failed investment schemes (payments from liquidators, administrators or Class Action compensation payments);
So how do you deal with these amounts?
ATO refunds when SMSF bank account closed
Depending on the circumstances of the members of the fund, there are two options:
If the members are over their preservation age, the cheque refund can be returned to the ATO and a request can be made to pay the refund amounts directly to a bank account of the members.
If the members are under preservation age, the cheque refund can be returned to the ATO and a request made to pay the amounts to the member(s) other superannuation member accounts with an industry or retail superannuation fund.
The following is from the ATO:
If a self-managed super fund's (SMSF's) bank account has closed and they've received a refund cheque, the SMSF will need to return the cheque along with a letter to us. The letter should include the:
SMSF's name and TFN/ABN
date the SMSF was wound up
reason the bank account was not left open
proportion of the refund that should be allocated to each member
details of where each member's super has been paid, for example:transferred to another super fund (include super fund ABN and account number if known)paid to member as a benefit (date and type of benefit paid).
signature of a trustee or the fund's authorised contact on behalf of the trustee.
The letter should be sent to:
Australian Taxation Office
PO Box 3578
Albury NSW 2640
It's also recommended the SMSF keeps a copy of the letter and cheque for their own records, and the SMSF will receive a response within 28 days.
Source: ATO Community - Will the ATO reissue a refund cheque to a member when the SMSF has been closed?
Payments or refunds from third parties
With payments and refunds are issued to a closed or wound up SMSF from other parties including investment related items, you will generally need the co-operation of the payer to ensure the payment is made to the correct fund or persons.
Once again, where the former SMSF members are above preservation age, it can be requested to have the payments made to the member or members personally. You may need to provide evidence to the payer regarding the individuals authority to direct the payment.
Where the former SMSF members are under preservation age, any amounts SHOULD be paid to their nominated superannuation fund account. In this instance, the former trustee(s) needs to request the payer issue payment to the trustee / account of the industry or retail superannuation fund.
In addition, the payment from the third party to the APRA regulated fund should be accompanied by a rollover statement on the former SMSF members behalf. This rollover statement can either be prepared by the former SMSFs accountants or SMSF administrators or by the members themselves.
Can a refund cheque simply be transferred or deposited to a members account?
Possibly. Once again, if the former SMSF members are under preservation age, then the amount of the refund or payment is a preserved benefit and should not be released to the individuals.
Where the former SMSF members are above preservation age, then provided the financial institution accepts it, then yes the refund or payment cheque can be deposited into the individuals personal account.
Some financial institutions will need to see documentation including trust deeds of the closed SMSF to confirm the individuals eligibility to deal with the payment or refund amount.
Small amounts under $200 - ATO-help super
Where the ATO holds small amounts of super of less than $200 on your behalf, either they will automatically consolidate it to another superannuation fund you are a member of of they will pay it to you personally.
More information: ATO held super