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Discussion in 'Superannuation, SMSF & Personal Insurance' started by rg146, 13th Nov, 2010.

  1. rg146

    rg146 New Member

    Joined:
    12th Nov, 2010
    Posts:
    1
    Location:
    Australia
    Hi,
    its nice to see that there is someone who can help me with my superannuation questions..
    I have a quick question: if a person is of age 65 and he retires now, he will receive tax free component as tax free
    ...
    But what about taxable component. will it be taxed at any rate..because their is no information about taxed or untaxed component.
    so what should i do..should i assume its all taxed element and hence its tax free as client is above age 60..
    :confused:
     
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
  3. JPM Group

    JPM Group Member

    Joined:
    7th Nov, 2010
    Posts:
    21
    Location:
    Moorabbin, Victoria
    Hi there,

    If you are over the age of 60, the capital amount is tax free (whether it being a tax free component or taxable component).

    Take consideration of withdrawing this as a lump sum and holding the funds in your personal name. Any interest or dividends you receive from the capital amount invested would be subject to the marginal tax rate.

    I would covert the super into a pension and draw down a regular income stream (again tax free). More importantly, the capital amount held in the pension environment will not incur any tax. In addition, you have the liquidity to withdrawl ad hoc lump sums as you wish.

    Hope this helps.