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SMSF is a one member fund with corporate trustee (1 shareholder director)
the existing resident member wishes to add non resident sibling as a new member.
the non resident sibling resides overseas.
Can non resident join as a member if the Fund and director of trustee company?
can non resident make contributions to the fund?
Hi Brian
The residency rules & SMSF's are complicated. A non resident can become a director of the trustee company but the active member rules will determine if they can make contributions or make a rollover to a SMSF.
In May 2021 the Government announced they were to relax the residency requirements for SMSF's but this has not been legislated yet.
A SMSF to meet the residency requirements also has to meet the active member rule.
The active member rule per the ATO is summarised as:
"The fund either has no active members or it has active members who are Australian residents and who hold at least 50% of either
the total market value of the fund's assets attributable to super interests, or
the sum of the amounts that would be payable to active members if they decided to leave the fund."
An active member is a member who receives a contribution or rollover in a year.
A non resident would not be able to make contributions or make a rollover to a SMSF if their balance exceeds 50% of the balance of all active members.
Thanks
SMSF AAA