Rollover to SMSF a contribution
A rollover/benefit transfer to a self-managed super fund (SMSF) will be considered a contribution when it comes to the active member-test, the Australian Taxation Office (ATO) said.
The ATO said once a member of an SMSF becomes a non-resident, the SMSF should not receive any contributions, rollovers, or benefit transfers by in respect of the members.
If this does not happen, the SMSF may fail the active member test and may not be a complying super fund.
The test is one of three to see whether a complying super fund has lost its residency status.
Loss of residency means the fund faces a special tax of 47 per cent on the asset value of the fund (less un-deducted contributions).
AUTHOR
Malavika Santhebennur
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
