What happens to an SMSF if all members move overseas permanently?

SMSF Frequently Asked Questions
1

SMSFs must remain an Australian super fund to maintain concessional tax treatment. This requires passing the residency tests:

  • The fund must be established in Australia,

  • Central management and control must remain in Australia,

  • Active members must hold at least 50% of fund balances.

If all members move overseas permanently, the SMSF will likely fail the residency tests and could be taxed at 45% on its income. Often, members in this situation roll their benefits into a retail or industry fund before leaving.