Don’t lose half your fund to the tax office. A must read section for all who have an SMSF Fund.

Self-Managed Super Funds

If you have a SMSF (Self-Managed Super Funds) then it’s imperative to seek advice before you leave as the penalties for non-compliance can be severe.

In Australia there are close to 600,000 SMSFs. The growth over the past ten years has been quite exceptional. They can be a great vehicle for those that wish to manage their own super investments, or invest in assets that typical super funds do not access, or to use borrowed funds to supercharge their investments.

However, for some the benefits of owning a SMSF can turn into a nightmare should the Australian Taxation Office (ATO) deem that the fund has become a ‘non-complying Australian superannuation fund’. 

How to retain your SMSF’s complying status?

For a SMSF to continue to enjoy the superannuation tax concessions it must remain a ‘complying Australian superannuation fund’. To remain a complying SMSF your fund must pass three tests:

Penalties for non-complying non-resident SMSFs

If the ATO deems that your SMSF is a non-complying fund, you may lose all the tax concessions that are available for super funds in general. Not only in the current year, but also since inception of the SMSF.

The current penalty stands at 45% of the SMSF income AND the SMSF’s ‘concessional component’ in the year that the SMSF became non-compliant.

We’re always here to help

Retire to Asia can assist in answering the relevant questions regarding this topic so that you can make more informed decisions.

If you hold a SMSF, it is imperative that you understand the rules surrounding SMSFs and potential non-compliance due to living overseas. 

If you’d like more information or have any questions, please feel free to call 1800-961-377 or email info@retiretoasia.com.au and let the team at Retire to Asia help make your dream lifestyle a reality.