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Self-Managed Super

A growing number of Australians are choosing to manage their own super through a Self-Managed Super Fund or (SMSF). An SMSF is a tax structure, established as a trust, which you control in preparation for your retirement. An SMSF gives you more flexibility than retail or industry funds, giving you the ability to invest in and directly own investments.

There are a number of obligations that need to be fulfilled when one manages their own super however those who purchase assets through a SMSF currently enjoy substantial tax benefits.

SMSF KEY TAX BENEFITS

While you are still working, accumulating assets and preparing for retirement:

  • SMSF’s income is taxed at a flat rate of 15%
  • Capital gains are taxed at a flat rate 10%.

Once you retire or start drawing a “pension” from your SMSF:

  • SMSF’s income below $100,000 p.a. is taxed at a flat rate of 0%
  • Capital gains are taxed at a flat rate 0%.

When property is owned in our personal name the rental income and capital gains taxes are calculated on the investor’s marginal tax rate:

  • For high income earners, the top tax rate including the Medicare Levy of 2% and the Budget Repair Levy of 2% equates to 49%.