Hello everyone

Hi,
its nice to see that there is someone who can help me with my superannuation questions..
I have a quick question: if a person is of age 65 and he retires now, he will receive tax free component as tax free
...
But what about taxable component. will it be taxed at any rate..because their is no information about taxed or untaxed component.
so what should i do..should i assume its all taxed element and hence its tax free as client is above age 60..

 

Lump sum benefits from a taxed super fund
See the box towards the bottom.

Speak to your FPA registered Financial Planner or registered Tax Accountant.

 

Hi there,

If you are over the age of 60, the capital amount is tax free (whether it being a tax free component or taxable component).

Take consideration of withdrawing this as a lump sum and holding the funds in your personal name. Any interest or dividends you receive from the capital amount invested would be subject to the marginal tax rate.

I would covert the super into a pension and draw down a regular income stream (again tax free). More importantly, the capital amount held in the pension environment will not incur any tax. In addition, you have the liquidity to withdrawl ad hoc lump sums as you wish.

Hope this helps.