By David Busoli


All SMSFs need to ensure important decisions about the fund, including its central management and control, are made in Australia if the trustees are temporarily overseas for more than two years.

This can be solved by having at least one director of the trustee company in Australia making high level and strategic decisions for the fund, or by appointing an Australian-based replacement director acting under a power of attorney.

Usually the non-resident director resigns, but this is not necessary if the replacement director acts in their place as an alternate director.

The original director who is usually overseas would hold effective office when in Australia, and the alternate director would hold office when the original director is overseas.