Home Who are we? Working with us Fast Track Publications Site Map Links Search

 


Home

 
Up

 

People with Self Managed Super Funds can now work overseas without fear

We see all to often member and trustees temporarily working overseas and their SMSF becoming non-complying. The Income Tax Act 1936 is being amended to help SMSF trustees retain their complying fund status.

Changes are being made to the "central management" and "control test" for residency. Both will now be satisfied is the member or trustee moves overseas for less than 2 years.

At the moment it is necessary for the member to reside in Australia for the whole of a year of income to meet the "active member" test. This silly rule is also going.

The new rules only take effect at the time the bill becomes law. Expect to wait. We will let you know if and when the bill becomes law.

Brett Davies Lawyers, 197-201 Adelaide Terrace, Perth, Western Australia (parking via Burt Way)
ASSISTANT TREASURER

NO.049

Overseas Employment and the Residency Status of Self Managed Superannuation Funds (SMSF)

The Assistant Treasurer, Senator Rod Kemp, today announced that the Government would be amending the Income Tax Assessment Act 1936 to make it easier for SMSF trustees to retain complying fund status.

The Government wants to ensure that a fund does not become non-complying, and suffer the tax consequences, where a member/trustee temporarily works overseas, Senator Kemp said.

Under the proposed changes, the central management and control test for residency will continue to be satisfied so long as the member/trustee’s move overseas generally does not exceed two years.

In addition, it will no longer be necessary for a member to reside in Australia for all of a year of income in order for the ‘active member’ test to be met.

The amendments will take effect from date of Royal Assent.

The Government intends to introduce these amendments into Parliament as soon as possible. Further detail on these changes is available on the ATO website, www.ato.gov.au.

CANBERRA
4 October 2000

Media contacts:
Richard Allsop Assistant Treasurer’s Office (02) 6277 7360
Trevor Thomas Australian Taxation Office (02) 6216 8317