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With the federal election looming ever closer and the strong probability of Labor wining, my question is.
I have a SMSF all in pension phase, No concessional contributions. What are you thoughts ?
Could one commute part of ones pension back to accumulation phase, so as to use the franking credits that would be other wise lost to labor’s policy change. If one was currently receiving around $5000 to $10000 in franking credits, how much would you have to roll back?
If this was about say $60000 would it be worth while? Noting that as I understand it that you would then have to get and pay for a Actuarial certificate each year.
I don’t really want the hassle of winding up my fund and moving elsewhere at this point in time.
Your thoughts please.
A: If you were eligible to make a contribution (capped at $25,000), then you could apply those franking credits to reduce or eliminate the 15% tax on the contributions. Contributions are automatically applied to the accumulation part of super until you elect to commence a pension.
Moving money from a 0% tax state (pension) to a 15% tax state (accumulation), and then applying those franking credits to bring it back to a 0% tax state, wont achieve any net benefit.
