Pension phase

Pension phase is the period during which a super fund pays an income stream or pension. The alternative to a pension phase is the accumulation phase.

Set out below are all SuperGuide articles explaining Pension phase.

Tax-free super for over-60s, except for some

If you withdraw your super benefits after you turn 60 years of age, you can expect to pay NO tax on those super benefit payment, unless you are a member of certain public sector super funds (see summary table at the end of this article).Due to the large number of emails I receive on this topic, … [Read more...]

Tax-deductible super contributions: Timing start of pension is essential

Q: I put money into my SMSF in June 2015 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 August 2015. As I understood the rules, so long as the money was in the fund at June 2015, I … [Read more...]

SMSF pension: How do I calculate my minimum pension payment?

Q: I run our SMSF. I wish to retire at 58. 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?A: You ask a very popular question. The minimum … [Read more...]

SMSFs: How do I calculate CGT on an asset sale?

Q: If I purchased a rental property in my SMSF for say $300,000 five years ago and the house is now valued at $400,000 in the SMSF what will be the capital base for the calculation of future capital gains tax (CGT) if I sell the flat? Will it be the original $300,000 or the $400,000?A: I am not … [Read more...]

SMSFs: Selling a property asset and CGT

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...]

SMSF confidential: the inside story on DIY super funds

Note: The ATO publishes an annual report about SMSFs for each financial year. This article covers the ATO’s 2013-2014 statistical review of SMSFs (released in December 2015). This report also contains data for the 2014-2015 year. The annual report for the 2014-2015 year will be available in late … [Read more...]

SMSF Pension Guide: ATO’s top 20 tips

Note: We have created this valuable guide to assist those readers running SMSF pensions, or for any reader considering starting a SMSF pension.In a recent speech to an accountants’ conference, Kasey MacFarlane, ATO’s Assistant Commissioner SMSF Segment, clearly articulated the key SMSF pension … [Read more...]

Do I pay tax on a super account in the last year of accumulation phase?

Q: On 1 May 2016 I am transferring from accumulation phase to pension phase (I turn 65 on 30 April 2016). Is my super fund subject to tax (for 2015/2016 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...]

SMSFs: Taking a lump sum from your super fund (5 Q&As)

Q: We have a SMSF with two members, both members having accumulation accounts and pensions. We understand that when you draw down pension amounts, the drawdown amount reduces the pension balance in accordance with the pre-existing tax-free component/taxable component, and any super contributions you … [Read more...]

Super pensions: Starting a TRIP takes planning

SUPER ALERT! On 3 May 2016 (in the 2016 Federal Budget), the Coalition government announced that, from 1 July 2017, it intends to remove the tax exemption on pension fund earnings financing a transition-to-retirement pension (TRIP). This change, subject to legislation, will apply to TRIPs in place … [Read more...]