At age 60 accessing and using your funds. When you reach 60 and you can access your Super funds can you invest freely ie ETFs/Index Funds/ Fixed Interest Income funds etc without having a SMSF?
If this is possible - when you draw money from these investments do you incur a flat 15% tax or has the tax (15%) been already paid by the fund? Do you pay 15% on earnings only?
When you reach 60 and you can access your Super funds can you invest freely ie ETFs/Index Funds/ Fixed Interest Income funds etc without having a SMSF?
Reaching age 60 is not enough - you also need to pass a condition of release. e.g.
“Retirement = working less than 10 hours each week” or
“Cease position of employment after age 60” or
“Reach age 65.”
If this is possible - when you draw money from these investments do you incur a flat 15% tax or has the tax (15%) been already paid by the fund? Do you pay 15% on earnings only?
No - once money is invested outside super, income is taxed at individual tax rates.
When you reach 60 and you can access your Super funds can you invest freely ie ETFs/Index Funds/ Fixed Interest Income funds etc without having a SMSF?
Reaching age 60 is not enough - you also need to pass a condition of release. e.g.
“Retirement = working less than 10 hours each week” or
“Cease position of employment after age 60” or
“Reach age 65.”
If this is possible - when you draw money from these investments do you incur a flat 15% tax or has the tax (15%) been already paid by the fund? Do you pay 15% on earnings only?
No - once money is invested outside super, income is taxed at individual tax rates.
Thanks Bruce, I understand the condition of release rule.
So if I access my Super in a lump sum (outside it's current fund) and I invest into ETFs/Index Funds etc I have to pay tax at an individual tax rate?
I thought your Super funds were a flat 15% tax rate and you could use the funds how you wish to invest?
I do not want to remain in a Super Fund or have a SMSF?
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