How are SMSFs taxed?
There are three levels of taxation on SMSFs. Contributions tax If the money paid into your super has not already been taxed, it will attract a 15 per cent tax on the way into the fund (known as concessional or salary sacrifice contributions). There is no contributions tax if your money has already been taxed (called non-concessional contributions). Tax on earnings • The income you earn on your investments within your SMSF is taxed at a maximum rate of 15 per cent while in the accumulation phase. Capital gains are also subject to income tax. When an SMSF is in the pension phase all income and capital gains are tax-free. Tax on benefits • Lump sum benefits There is no tax on lump sum super or pension benefits paid to people age 60 and over, provided a condition of release has been satisfied. • Income streams If you roll your benefit into a superannuation income stream product, you pay no tax on investment earnings (which includes any realised capital gains). You will also pay no tax on y
