SMSF Audit Technical Series by Sharlene Anderson, Director-Veritas Corporation, brought to you by CaseWare Australia & New Zealand
In order to be a complying superannuation fund and receive the available tax concessions, an SMSF must remain an Australian SMSF for the entire financial year. If it doesn’t and the fund becomes non-complying, its assets and income will be taxed at the marginal rate of 49%, instead of the commissionary rate of 15%.
In summary, for a fund to pass the residency test, it must satisfy the following 3 criteria:
- The fund must have been established in Australia;
- The central management and control of the fund is ordinarily undertaken in Australia; and
- Active members of the fund are Australian residents and hold at least 50% of the market value of the fund
CaseWare’s SMSF Audit content provider and subject expert Sharlene Anderson, has written a technical article on audit considerations when there are changes to residency – click here to read her article.