Booklet: Private Ancillary Funds (PAFs)

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


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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:

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.


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