Q: I run our SMSF. I wish to retire at 55. I am a little confused about the 4% minimum rule for pensions. Do I have to withdraw 4% of my total accumulation SMSF fund, or do I move some of the assets into a pension fund and then draw 4% a year (or whatever the pension relief amount is)? A: You ask … [Read more...]
Q: On May 1 2013 I am transferring from accumulation phase to pension phase (I turn 65 on 30 April 2013). Is my super fund subject to tax (for 2012/2013 year) on income earned up until the date of conversion, or is no tax payable because the fund has been converted to pension phase? Earnings are … [Read more...]
Q: I wondered if a SMSF pension that was started at the relief rate of 3%, would it then have to increase to the 4% once the relief period expired, or would it remain at 3% because it was started at that rate? The temporary pension payment relief (75% of the usual minimum pension payments) … [Read more...]
In late 2012, the federal government dropped a potential T-bomb (that is, a tax bomb) and fuelled the rumours that tax-free super benefits were to be removed for over-60s. The rumours fizzled out when the government realised it would be political suicide to remove the tax-free status of retirement … [Read more...]
Note: The ATO publishes an annual report about SMSFs for each financial year. This article covers the ATO’s 2010-2011 statistical review of SMSFs (released in late December 2012). This report does contain data for the 2011-2012 year as well. The annual report for the 2011-2012 year will be … [Read more...]
Q: I am 62 years of age and retired. I have recently commenced an account-based pension from my SMSF. Can I still make non-concessional contributions to that fund? A: I have divided your question into two parts. 1. Can someone who is 62 years of age and retired, continue to make super … [Read more...]
Q: How do you change your self-managed super fund (SMSF) from accumulation phase to pension phase (husband aged 60, and retired) and transition-to-retirement pension phase (myself aged 57 and still working part time)? If an accountant has to do it, what costs could be involved? Your site has been a … [Read more...]
It seems that many Australians nearing retirement don’t like the terms ‘retirement’ or ‘pension’. Some advisers who are recommending ‘transition-to-retirement pensions’ are experiencing client resistance because clients are adamant that they’re not retiring (at least not for a few … [Read more...]
Q: After I turn 55, I intend to start drawing from my super account. Will my super then count as an asset, for the Age Pension asset test? As my partner is over 65, most of our money is in my super and we are currently eligible for the Age Pension. A: Generally speaking, the answer is yes. … [Read more...]
Q: I put money into my SMSF in June 2011 from a capital gain. I wasn’t able to tell the fund at that time what it was for as my accountant hadn’t completed the figures so that notice was sent to them in April 2012. As I understood the rules, so long as the money was in the fund at June 2011, I … [Read more...]
Note: The Q&As listed in this article have been revamped and updated for the 2012/2013 year. One of SuperGuide’s more popular initiatives has been the development of a ‘Super for Beginners’ section that answers some of the many questions that we receive from those readers who are new to … [Read more...]
Q: I am trying to understand how my super is taxed and it seems that it is taxed at every turn. Can you please explain when, and how, a super benefit is taxed? A: If it were not for tax, superannuation wouldn’t exist. You would simply invest in your own name. Superannuation is taxed at lower … [Read more...]
Q: I am confused. When I retire and I am over 60 I receive tax-free super benefits. Someone has told me that I also get other tax-free stuff. Can you tell me what that is? In terms of retirement and superannuation, when you reach 60 and start a retirement income stream (super pension) you get two … [Read more...]
Note: The case studies have been supplied and updated by the Financial Information Service. SuperGuide would like to thank Financial Information Service officer, Regan Welburn for his assistance in updating and supplying the case studies. The latest update was May 2012, taking into account the March … [Read more...]
Q: If my self-managed super fund (SMSF) owns an investment property, and the SMSF later sells the property, what is the amount of capital gain tax payable by the SMSF? A: Before I respond, please note that anyone considering the tax implications of a strategy or investment decision should speak … [Read more...]
