The Assistant Treasurer, Senator Rod Kemp, today announced that the Government would be amending the Income Tax Assessment Act 1936 to make it easier for SMSF trustees to retain complying fund status.
The Government wants to ensure that a fund does not become non-complying, and suffer the tax consequences, where a member/trustee temporarily works overseas, Senator Kemp said.
Under the proposed changes, the central management and control test for residency will continue to be satisfied so long as the member/trustee’s move overseas generally does not exceed two years.
In addition, it will no longer be necessary for a member to reside in Australia for all of a year of income in order for the ‘active member’ test to be met.
The amendments will take effect from date of Royal Assent.
The Government intends to introduce these amendments into Parliament as soon as possible. Further detail on these changes is available on the ATO website, www.ato.gov.au.
CANBERRA
4 October 2000
Media contacts:
Richard Allsop Assistant Treasurer’s Office (02) 6277 7360
Trevor Thomas Australian Taxation Office (02) 6216 8317