SMSF Association Submission – Modernising Individual Tax Residency Consultation Paper

SMSF Association Submission

The SMSF Association welcomes the opportunity to provide this submission in response to the Government’s consultation paper on Modernising Individual Tax residency.

In the 11 May 2021 Budget, alongside the modernising of individual tax residency rules, the former Government announced changes to two components of the tax residency rules for self managed superannuation funds (SMSFs). These measures are to still be legislated and have not yet been opened for consultation.

The two elements in question are the removal of the active member test and the extension of the temporary absence rule for non-residents from 2 to 5 years.

We thank the Government for the October 2022 Budget announcement which confirmed that the reform of the residency rules has been incorporated into the Government’s policy agenda.

Read the full submission below.

Modernising Individual Tax Residency Consulation Paper

SMSF Association Submission