My husband and I retired this financial year. He retired in Aug 2018 and I retired end on Feb 2019.
Pensions were created in our SMSF on these dates.
Is tax still payable on income and capital gains proportionately up to the dates of retirements or is all income exempt for 2019 year?
A: Graeme Colley, Executive Manager, SMSF Technical and Private Wealth at Super Concepts has provided the following answer:
As you and your husband were in accumulation and pension phase at various times during the year you can expect that a proportion of the fund will be in accumulation phase and pension phase during the 2019 financial year. The proportion of the fund’s income that the fund’s actuary considers to be in accumulation phase will be taxed at 15% which will be offset by any franking credits on dividends received.”