SMSF

At the heart of the system is yourtransfer balance account, a notional record the ATO keeps to measure how much of your personal cap you have used. Two types of entries move the balance:

The starting point is the familiar gap. Accumulation earnings in a complying SMSF are taxed at15%, with aneffective 10%onLong-term capital gainsafter the one-third discount. Retirement-phase earnings areExempt Current Pension Income (ECPI)at0%, and pension payments are tax-free from age 60.

Every SMSF paying a pension involves two taxing points. The first is thepension withdrawalpaid to the member — money leaving the fund and landing in the member’s hands. The second is thefund-level earnings— the income and capital gains the fund generates on its investments …

An account-based pension is the most common way an SMSF pays a retirement income. Under AustralianSuperannuationlaw, once a member commences one, the fund must pay them at least a minimum amount every financial year. The minimum is not a fixed dollar figure; it is …

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. …