Booklet: Private Ancillary Funds (PAFs) (Chapter 9 – Winding up a PAF)

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.

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Booklet:Private Ancillary Funds (PAFs)

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The information contained in this post is current at the date of editing – 1 April 2026.