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September 2024 Retirement planner newsletter

How to turn your super into retirement income
With so much focus on saving for retirement, many of us have given little thought to how we will access our savings once the big day arrives. We explore the options. Read more.
How to turn your super into retirement income
With so much focus on saving for retirement, many of us have given little thought to how we will access our savings once the big day arrives. We explore the options. Read more.
How much super should I have at my age?
There’s plenty of information on how much super you need for a comfortable retirement, but little on how much you should have now to reach your target. We provide some guidance to this important question. Read more.
How much super should I have at my age?
There’s plenty of information on how much super you need for a comfortable retirement, but little on how much you should have now to reach your target. We provide some guidance to this important question. Read more.
Retiring this year? What to know before starting a super pension
If retirement is on the cards this financial year it pays to consider these super strategies before you flick the switch to pension phase. Read more
Retiring this year? What to know before starting a super pension
If retirement is on the cards this financial year it pays to consider these super strategies before you flick the switch to pension phase. Read more
What are the current work test rules for super contributions?
Even though the work test has been abolished for most super contributions, if you are over age 67 there is still one type of contribution that needs to pass the… Read more.
What are the current work test rules for super contributions?
Even though the work test has been abolished for most super contributions, if you are over age 67 there is still one type of contribution that needs to pass the… Read more.
Retiree reflections: “If I had my time over again, when would I retire?”
Now that we are living longer, and the cost of living has increased significantly, we ask retirees if they have any regrets over the timing of their retirement Read more.
Retiree reflections: “If I had my time over again, when would I retire?”
Now that we are living longer, and the cost of living has increased significantly, we ask retirees if they have any regrets over the timing of their retirement Read more.

SuperGuide members Q&A: September 2024

Tuesday 24 September 2024 at 11:00 am AEST

In this webinar super expert Garth McNally answers recent questions from SuperGuide members.

Q: Firstly I’m not after personal advice, I just wanted your view on a scenario, which could possibly help others as well with CGT on rollovers with shares held in custodial. 

Let’s say someone in their 50s with 20% of funds in an Index option and 80% balance in direct shares through the fund.Now if they want to rollover the direct shares to their SMSF, (leaving the index option with the fund because insurance is cheaper and easier). The problem occurs with CGT (even on rollover) as the direct shares are held in custodial and therefore need to be sold. This brings CGT into action, very frustrating and I feel is wrong by the ATO. Can you share your thoughts on this scenario please?

A: You are correct that shares and ETFs held in an APRA regulated super fund via a member direct option generally need to be sold before funds can be rolled over (either to another APRA regulated fund or to an SMSF), and CGT is payable on the gain from any sale.

In super, the tax rate on gains is 15%, or an effective rate of 10% for assets held longer than 12 months due to the 1/3rd discount.

This is a risk of choosing member direct investments if you do not remain with the same super fund through to retirement, and is disclosed in the product guides for member direct options.

Before deciding to roll over, you would need to consider whether paying the tax is worthwhile or if it would be desirable to remain invested through to retirement where assets can be sold tax-free in the pension/retirement phase.

Worrying about making a mistake can prevent you from taking the steps you need to get your retirement plans on track. Learn about the mistakes you don’t want to make to set your mind at ease and avoid the biggest mistake of all – doing nothing.

Important: All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs. You should consider whether any information on SuperGuide is appropriate to you before acting on it. If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions.

Superguide Pty Ltd ATF Superguide Unit Trust as a Corporate Authorised Representative (CAR) is a Corporate Authorised Representative of Independent Financial Advisers Australia, AFSL 464629.