The Government has delivered self-managed superannuation funds more flexibility via changes to the active member test.
The Budget papers have confirmed the Government will relax residency requirements SMSFs and small APRA-regulated funds (SAFs) by extending the central control and management test safe harbour from two to five years for SMSFs, and removing the active member test for both fund types.
The Budget papers said the measure would allow SMSF and SAF members to continue to contribute to their superannuation fund whilst temporarily overseas, ensuring parity with members of large APRA-regulated funds.
“This will provide SMSF and SAF members the flexibility to keep and continue to contribute to their preferred fund while undertaking overseas work and education opportunities,” the Budget papers said.
“This measure is estimated to have a small but unquantifiable impact on the underlying cash balance over the forward estimates period.”