The residency status of a SMSF will not be jeopardised where the trustees:

Question

Quizplus · Accepted Answer

Under the Superannuation Industry (Supervision) Act 1993, a SMSF is considered an Australian resident fund unless the central management and control of the fund is located outside of Australia or the active member test is failed. However, if the trustees of the SMSF travel overseas for more than two years, the SMSF can be considered a non-resident fund, which can lead to tax consequences. To avoid this, the trustees can be absent from Australia for up to two years if they return for at least 28 days in each year or can be absent for up to five years if certain conditions are met. Therefore, option C is the best choice as it correctly states that the trustees can travel overseas for no more than 24 months before returning for at least 28 days to maintain the SMSF's resident status.

The Residency Status of a SMSF Will Not Be Jeopardised