The SMSF trap Australians discover after moving overseas
One of the most surprising questions I received recently came from a client who had moved overseas and was unlikely to return to Australia.
Their question was simple:
“Can my SMSF really be taxed at 45% if I live overseas?”
The answer is: potentially, yes.
Moving Overseas? Don’t Destroy Your SMSF
Under Australian tax law, a self-managed super fund must satisfy certain residency requirements to remain compliant.
One of the most important is central management and control.
If that control shifts overseas for too long, the SMSF may be treated as a foreign super fund, which could expose the fund to very significant tax consequences.
In many cases, the key solutions involve:
• ensuring strategic investment decisions occur in Australia
• appointing a trustee or director in Australia with enduring power of attorney
• avoiding contributions while you are overseas
This area of SMSF law is complex and depends heavily on individual circumstances.
But for Australians living abroad, it’s an issue that should never be ignored.
Your client's situation
Whether and how this fits your situation is a conversation with Grant.
Ask the free strategist the what and the why, then book a private session to work through the how.