SMSF

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 …

A complying self-managedsuper fundpays15 per centtax on its income whileAssetssit in accumulation phase. That covers dividends from Australian shares, interest from cash and term deposits, distributions from managed funds, and rent from property held by the fund.

In accumulation phase, a complying SMSF pays15 per centon earnings, and capital gains on shares heldmore than 12 monthsreceive aone-third CGT discount, giving aneffective 10 per centrate. Shares held for 12 months or less get no discount, so the gain is taxed at the …

InSuperannuationlaw, the retirement phase is not a stage of life; it is a status attached to a superannuation income stream. A member’s interest is in the retirement phase when they are being paid a superannuation income stream that qualifies, and that qualification is what …

An accumulation account is the default. While a member is building their super — receiving contributions, reinvesting returns, growing the balance — the money sits in accumulation. There is no requirement to draw anything out.

In this illustration, Susan is62and has permanently retired, meeting a full condition of release. She is the sole member of her SMSF, which holds$1,000,000entirely in a retirement-phase account-based pension as at 1 July 2026. Her balance is comfortably within the general transfer balance cap, …

An SMSF account-based pension must pay a minimum amount each financial year, set as a percentage of the member’s balance that increases with age. With the temporary COVID-era 50% reduction having ended on 30 June 2023, the standard rates apply in full for 2026–27: