VIC Super conversion to SAF

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

peteleslie

Member
5 December 2020
1
0
1
I am currently resident in Europe and have solid financial reasons for wanting to convert my small superannuation amount into a small APRA fund so that I can cost effectively increase my Super in preparation for retirement - which isn't that far away really. But, I was told that I can only convert my Super into an SAF if I am in Australia, and not now that I have already left. Having thought about it, I cannot see any legitimate policy reason for being prevented from converting my Super into an SAF on the basis that I am already resident somewhere else. In other words, it is surely not the intention of the legislators to say that I must know before I leave Australia for work/career, with certainty, whether I will soon return or not. It is nonsensical to say that I must arrange my Super in line with knowledge about a future state that I cannot possibly know.
So my question here is whether this state of affairs is true. Is it really required by the Federal government that I am only allowed to convert my Super into an SAF while I am currently resident in Australia, even though the point of the SAF is to allow me to continue to manage my Super while resident overseas ?? Surely, if this is true, this is an oversight by the legislators. I genuinely feel bereft of my rights to invest and manage my Super in these circumstances. It is costing me dearly as I am able to significantly improve my Super balance by getting more control through the SAF structure. What can be done to enable me to establish an SAF while I am already resident overseas and need the benefits that the SAF was designed to provide in my specific circumstances..?
 

Smiley

Well-Known Member
1 April 2015
53
7
224
I am currently resident in Europe and have solid financial reasons for wanting to convert my small superannuation amount into a small APRA fund so that I can cost effectively increase my Super in preparation for retirement - which isn't that far away really. But, I was told that I can only convert my Super into an SAF if I am in Australia, and not now that I have already left. Having thought about it, I cannot see any legitimate policy reason for being prevented from converting my Super into an SAF on the basis that I am already resident somewhere else. In other words, it is surely not the intention of the legislators to say that I must know before I leave Australia for work/career, with certainty, whether I will soon return or not. It is nonsensical to say that I must arrange my Super in line with knowledge about a future state that I cannot possibly know.
So my question here is whether this state of affairs is true. Is it really required by the Federal government that I am only allowed to convert my Super into an SAF while I am currently resident in Australia, even though the point of the SAF is to allow me to continue to manage my Super while resident overseas ?? Surely, if this is true, this is an oversight by the legislators. I genuinely feel bereft of my rights to invest and manage my Super in these circumstances. It is costing me dearly as I am able to significantly improve my Super balance by getting more control through the SAF structure. What can be done to enable me to establish an SAF while I am already resident overseas and need the benefits that the SAF was designed to provide in my specific circumstances..?
Hi,

Can you confirm if you are wanting to establish a SAF or a SMSF? You state SAF but that typically requires a professional trustee to manage, which for an individual I am unsure they would do so as I have never inquired at an individual level.

If you mean SMSF, then the short answer to your question would be no. The following links might be of use. Essentially it comes down to where "control" of managing your SMSF will take place, which must take place in Australia. EG you can't have overseas parties controlling an Australian financial investment (key word financial)without some type of financial licence or exemption, which I do not think exists given your circumstances.

The following link is worth a read, in particular point 3 which may be difficult for you to comply with?


The following link substantiates on the ATO information:


Here is another link in relation to SAF's and owners residing overseas:


Best of luck