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Re: IOOF deducting CGT on Super consolidation or withdrawals

Newbie

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Has anyone had Capital Gains Tax deducted directly from their superannuation account (accumulation phase) when withdrawing funds or consolidating personal superannuation?

I have talked to the superannuation department and the CGT department at the ATO and also other forums (Choice).
The ATO said they have never heard of CGT ever being directly deducted from superannuation accounts and a member of the Choice forum had his super consolidated 2 years ago and the full amount was transferred without deduction.
I talked to my MLC who say CGT is deducted by them at a fund level and not superannuation accounts directly. Any withdrawals have no CGT deducted.
I am trying to establish if this direct deduction is fairly recent and after IOOF have been forced not to deduct exit fees since 1 July 2019.  Its very difficult to get info from IOOF.

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Former Community Support

Replies 1

Hi @AB1959 

Superannuation funds pay tax on capital gains like any other entity however pay the lowest taxation rate. This can include assets in your own portfolio. They form, just like the tax on your superannuation contributions, part of the gains and losses that affect your superannuation account balance. It is possible you may not see these listed separately as capital gains with other funds but instead listed as part of investment returns. Reporting may differ fund to fund. I hope this is of assistance.

Regards

ClareN

2 REPLIES 2

Most helpful response

Former Community Support

Replies 1

Hi @AB1959 

Superannuation funds pay tax on capital gains like any other entity however pay the lowest taxation rate. This can include assets in your own portfolio. They form, just like the tax on your superannuation contributions, part of the gains and losses that affect your superannuation account balance. It is possible you may not see these listed separately as capital gains with other funds but instead listed as part of investment returns. Reporting may differ fund to fund. I hope this is of assistance.

Regards

ClareN

Newbie

Replies 0

Thanks for the reply and I am aware of the general rules regarding CGT and superannuation in accumulation phase, but the question was "Has anyone had Capital Gains Tax deducted directly from their superannuation account (accumulation phase) when withdrawing funds or consolidating personal superannuation?"

This is in particular reference to COVID-19 early release of superannuation recently through IOOF or anyone with experience in IOOF super withdrawal and consolidation. I have talked to people in the ATO and others and they say a large direct deduction reducing a superannuation balance on the day of withdrawal and consolidation is unusual and they have not seen this before in their experience.

If anybody has actual knowledge and experience in this then I would like to know as I have an ongoing APRA investigation into IOOF.
I believe the outcome may not just apply to my case.