tax on retirement income

Discussion in 'Superannuation, SMSF & Personal Insurance' started by D3xx, 19th May, 2019.

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  1. D3xx

    D3xx Well-Known Member

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    Say i'm 65yo and my $1M super balance earns $100k this financial year. How much tax is that $100k earning liable for? I ask because a workmate was arguing that tax is liable and I cant find a definitive article online to say one way or the other.
     
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  2. twisted strategies

    twisted strategies Well-Known Member

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    sorry , am on a disability pension ( and my portfolio balance is under $1 mill. but enough to dent that pension a little )

    i will defer to a member with deeper experience in this area , i suspect it is complicated but maybe not as complicated as now the Franking credit policy change looks less likely
     
  3. Hodor

    Hodor Well-Known Member

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    What does it consist of? Dividends? Capital gains? Are they realised? Are there franking credits associated with the dividends?

    You might not be liable for any additional tax or get a refund if the gains are mostly franked dividends.

    Generally speaking 15% in accumulation phase is a short answer.
     
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    could be 0%.
     
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  5. D3xx

    D3xx Well-Known Member

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    Assume for this discussion that 100% of the earnings, which are drawn down by the pensioner, are from capital growth. No dividends. No FC considerations.
     
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  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It is not a capital gains tax event unless the capital gain is crystalised - shares sold etc.
    If the shares are supporting a pension they are likely to be exempt from tax to the fund and once drawn it is also likely to be tax free to the member.

    But not always.
     
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