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Below is Chapter 9 of our ‘Private Ancillary Funds’ booklet. To read the other chapters of our booklet, click the links below:
- Chapter 1 – Giving back to the community
- Chapter 2 – Brief history
- Chapter 3 – An overview of ancillary funds
- Chapter 4 – What is a PAF?
- Chapter 5 – Who can be a trustee of the PAF?
- Chapter 6 – How are PAFs regulated?
- Chapter 7 – What are the reporting requirements for a PAF?
- Chapter 8 – Governance
- Chapter 10 – Common questions about PAFs
- Chapter 11 – Are they a good option for you?
- Chapter 12 – Overview of a PAF
Winding up a PAF
If you have decided that you no longer wish to maintain your PAF, there are two main options available to you:
- You can distribute the surplus assets to DGRs (and then wind up the PAF); or
- You can apply to the Commissioner of Taxation to either:
- Transfer the full assets of the PAF to an existing PAF; or
- Transfer the full assets of the PAF to become a sub-fund of a PubAF.
If you decide you want to simply wind up the PAF and wish to distribute the assets, you must do the following:
- Have written evidence of the trustee’s decision;
- Pay all liabilities and distribute all the remaining assets;
- Ensure there is an investment strategy and completed accounts, financial statements, an audit report and the annual return for the current year;
- Provide the ATO with:
- Advice of the PAF being wound up and the date of that occurrence;
- Any outstanding PAF return; and
- The revocation of agreement to comply with the Guidelines; and
- Cancel the ABN of the PAF.
The information contained in this post is current at the date of editing – 1 April 2026.