Does the fact that an Australian superannuation fund pays a pension to a non-resident member jeopardise the fund’s residency status?
This was the question recently put to the ATO and their answer is contained in a new Private Binding Ruling 1012821532232.
The ruling reviews the law and the ATO’s guideline (TR 2008/9) about what constitutes an Australian super fund and the need for the fund to pass three important tests:
- the fund was set up in Australia or has Australian assets
- the fund’s central management and control is in Australia, and
- the fund passes the so-called ‘active member’ test.
The ruling confirms that as long as these three tests are met the fund will remain an Australian superannuation fund and will not lose that status just because it pays a pension to a non-resident member.
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