Tax on an SMSF

Regarding the proposal to tax earnings from your SMSF assets over $100,000 per year – is that figure of $100,000 before or after you pay yourself a pension? For example, your fund may earn $120,000 but you pay yourself a pension of $30,000 which leaves an increase of $90,000 in your SMSF.

A: Thanks for the question.


It will be before you pay yourself a pension – that is, on the fund’s “effective” taxable income (investment earnings less investment expenses). The legislation has not been drafted yet – and there is no timetable –so it may never come into effect. If it does, I can assure you that any pension drawdown will not reduce the income.


I hope this helps.



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