Education

A complying self-managed super fund in accumulation phase pays15 per centtax on its earnings. Capital gains are treated a little differently. Where the fund has held an asset formore than 12 months, it qualifies for aone-third (33.3 per cent) CGT discount. Applying that discount …

Accumulation is the default phase forSuperannuationsavings. Contributions and earnings build up, taxed at concessional rates, until a member is able to convert some or all of their balance into a retirement income stream. When a member meets a condition of release and the trustees …

An account-based pension (ABP) is the most common retirement income stream paid from an SMSF. To start one, a member must first meet a condition of release — typically reaching preservation age (now 60) and retiring, ceasing employment after 60, or reaching age 65. …

Preservation age is the age at which you can generally begin to access your super, provided you also satisfy a condition of release. After a long phased increase, that age is now60 for every Australian. Anyone born on or after 1 July 1964 has …

The transfer balance cap is a lifetime limit on the total amount you can transfer intoretirement-phaseincome streams, such as an account-based pension. Retirement phase is the part of super whereInvestmentearnings — both income and capital gains — are exempt from tax. In an SMSF, …

The self-managed super fund now sits firmly in the mainstream of Australian superannuation. With1,239,977 membersspread across those 672,805 funds, the average SMSF has roughly two members, reflecting the sector’s traditional base of couples and family groups. CombinedAssetsof about$1.06 trillionmake SMSFs one of the largest …

When an SMSF pays a retirement-phase account-based pension, the earnings on theAssetssupporting that pension are treated as Exempt Current Pension Income (ECPI) and taxed at0%. This exemption covers bothInvestmentincome and capital gains on those assets. It is the reason retirement-phase super is such a …