Test 1: the fund was established in Australia, or any asset of the fund is situated in Australia;

A fund is established in Australia if the initial contribution made to establish the fund is paid to and accepted by the trustee of the fund in Australia.

Test 2: the central management and control of the fund is ordinarily in Australia; and

This means that the strategic and high level decision making processes and activities of the fund are regularly, usually or customarily exercised in Australia, including:

• formulating the investment strategy for the fund;
• reviewing and updating or varying the fund's investment strategy as well as monitoring and reviewing the performance of the fund's investments;
• if the fund has reserves - the formulation of a strategy for their prudential management; and
• determining how the assets of the fund are to be used to fund member benefits.

If the central management and control of the fund is being temporarily exercised outside Australia, this will not prevent the central management and control of the fund being 'ordinarily' in Australia.

Safe harbour rule provides that temporarily absent from Australia for a period of not more than 2 years will meet 'ordinarily' in Australia.

It is the trustees (individual trustees) or directors (corporate trustee) who exercise central management and control.

Test 3: the fund had no active member or at least 50% of:

(i)    the total market value of the fund's assets attributable to superannuation interests held by active members; or

(ii)   the sum of the amounts that would be payable to or in respect of active members if they voluntarily ceased to be members;

is attributable to superannuation interests held by active members who are Australian residents.

This test is satisfied, where:

• the fund has no 'active member'; or
• at least 50% of the total market value of the fund's assets attributable to superannuation interests held by active members is attributable to superannuation interests held by active members who are Australian residents; or
• at least 50% of the sum of the amounts that would be payable to or in respect of active members if they voluntarily ceased to be members is attributable to superannuation interests held by active members who are Australian residents.

A member is an active member if the member is a contributor to the fund or is an individual on whose behalf contributions have been made.

A member is not an active member if:

• the member is a foreign resident; and
• the member is not a contributor at that time; and
• the only contributions made to the fund on the member's behalf since the member became a foreign resident were made in respect of a time when the member was an Australian resident.