Ask Max: Your questions answered

Tax exemptions in pension mode, apportioning fees, taxable and tax-free benefits, dividend entitlements, and future income entitlements.

My SMSF has been in pension mode for seven years. As I have other income sources I have been taking the compulsory minimum pension in one lot during June each year. I notice your comment that if I should die before the pension is paid in a year, I would be regarded as not being in pension mode. Please advise me of the significance or impact of not being in pension mode when I die?

When a superannuation fund is in accumulation phase rather than pension phase the income earned by the fund is taxed at 15% and capital gains are taxed at 10%. A fund in pension phase pays no tax on income or capital gains.


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