With the rise in popularity of these accounts its highly likely that you may have a Australian Expat SMSF, otherwise known as a Self-Managed Superannuation Fund. These accounts add an extra layer of complexities in how Australian expats manage their superannuation.
We often find that when Australians first become an expat, and they manage their superannuation through an SMSF, they didn’t realise that by moving overseas they run the real risk of making their SMSF non-compliant.
To be eligible for concessional tax treatment, a superannuation fund needs to meet the definition of ‘Australian superannuation fund’ (ASF), along with other conditions.
Under s.295-95(2) of the ITAA97 a super fund is considered to be an ASF if all three of the following conditions are met:
The fund was established in Australia.
Central Management and Control (CMC) of the fund is ordinarily in Australia.
The fund has no active members or at least half of the funds’ assets relative to active members who are Australian residents.