If there’s one question I’m asked again and again by Aussies living overseas, it’s this:

“Liv, can I actually live overseas but still keep my SMSF in Australia?”

Short answer? Yes — but only if you get the residency rules right.
And the one that trips most people up is the Central Management and Control (CMC) test.

Let’s break it down, without the jargon, and with a few hard truths sprinkled in for good measure.

Central Management and Control (CMC)

Think of the CMC test as the ATO’s way of asking:

“Who’s really running this thing?”

Your SMSF must be managed and controlled from Australia.
Not Phuket.
Not Chiang Mai.
Not a poolside bar in Koh Samui (however tempting).

CMC covers the big-picture decisions of your SMSF, like:

• setting or changing the investment strategy

• admitting members

• deciding when benefits are paid

• overseeing compliance at a strategic level

If those decisions happen overseas - or if you’re directing them from overseas - the ATO can declare your fund non-resident.

And trust me, you don’t want that.
The tax implications make a 45% sunburn look mild.

But I Live in Thailand… Doesn’t That Automatically Fail the Test?

Not necessarily.

The ATO actually allows a temporary absence rule:
If you’re overseas temporarily, your SMSF can remain compliant as long as you intend to return to Australia.

But here’s the catch…

If your “temporary absence” has turned into:

• a long-term relocation

• an open-ended stay

• no flight home booked until your daughters finish high school (and they’re still in primary)

…then the ATO won’t treat you as temporarily absent.

That’s when you need a more permanent compliance solution.

The Practical, Real-World Ways to Keep Your SMSF Compliant While Living Abroad

Here are the strategies that actually work — the same ones I’ve recommended countless times.

1. Appoint Australian-Resident Trustees or Directors

If you’re living overseas long-term, you simply can’t keep acting as the person making high-level decisions.

So, appoint someone in Australia to do it.
This could be:

• your adult daughters

• a sibling

• a trusted friend

• a professional independent director

You stay a member of the fund — you just stop controlling it from Thailand.

2. Use a Corporate Trustee  

If your SMSF has a company as its trustee, it's incredibly clean and flexible:

• you step down as director

• the Australian-resident directors (e.g., your daughters) take over

• CMC stays firmly on Aussie soil

You remain a member, still benefit from the SMSF, but the fund stays compliant.

3.  Use an Enduring Power of Attorney (EPOA)

This is a little-known but powerful option.
You can give an Australian-resident person an Enduring Power of Attorney — and they become the trustee or director in your place.

You remain a member.
They legally manage the fund.
CMC stays in Australia.
Everyone wins.

4.  Convert Your SMSF to a Small APRA Fund (SAF)

If there’s no one suitable to act as trustee in Australia, moving to a SAF is a rock-solid option.

In a SAF:

• a professional APRA-licensed trustee handles all the control

• your fund remains compliant

• you still have input as a member, but the strategic decisions are made here in Australia

It’s essentially the “set-and-forget” version of SMSF compliance for expats.

Final Thoughts

Living overseas doesn’t mean you have to abandon your SMSF dreams or hand your retirement savings to a giant institution. It just means you need the right structure, the right people, and the right setup.

Get those pieces in place, and your SMSF can remain compliant.