The rate of taxation is the same for all complying superannuation funds. SMSF provides the opportunity to have greater control over taxation because of direct management of investments, such as the benefits of imputation credits.
The tax rate on income of the super fund is 15%. This includes:
Capital gains are eligible for a 33.3% discount on assets held for 12 months or more.
Earnings on assets supporing a retirement phase income stream (pension) is exempt from income tax. No tax is payable on capital gains.
There is a limit on the amount you can transfer into retirement phase to support an income stream over the course of your lifetime. This limit is known as the transfer balance cap.
Below is a summary of income and applicable tax.
| Income | Accumulation phase | Retirement phase Supporting current income stream |
| Concessional contributions | 15% | 15% |
| Non-concessional contributions | Nil | Nil |
| Investment earnings | 15% | Nil |
| Capital gains | Asset held for less than 12 months: 15% Asset held for 12 months or more: 10%* * Losses are applied before 33.3% discount |
Nil |
