Announcements
COVID-19 update: Check out our answers to common questions about JobKeeper payment and early release of super.

ATO Community

SMSF transfer to industry fund

Highlighted

Newbie

Views 1246

Replies 5

Hi

My wife and I are in our late 60's and are in full pension phase in our SMSF. We wish to transfer our super into an industry fund(Australian Super). Our assets are in term deposits only and they mature at different dates but 4 mature in late October and early November. We are not sure of the step by step process and would be grateful for any assistance.

The other 3 term deposits mature in March 2021 as they were invested for 2 years. Could we transfer these in 2021 and then wind up the SMSF? We would then have two super funds going for that period of time.

We don't get a government pension..

thank you

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Best answer

ATO Certified

Community Support

Replies 2

Hi @GregMolly

 

Welcome to our Community.

 

@Bruce4Tax has provided you with a useful link. We recommend that you have a good read of the information on our website.

 

You can have as many super accounts as you like. There are no rules that prevent people from being a member of a self-managed super fund (SMSF) and a member of an industry fund at the same time.

 

When you conduct a rollover from a SMSF to another super fund, you are not obliged to rollover your entire balance. You can rollover some of your balance in November this year and the rest in March 2021.

 

When you rollover your benefits to another super fund, as a SMSF trustee, you will be required to complete rollover benefits statements. As your super is in pension phase, you will also be required to complete transfer balance account reports (TBARs).

 

For more information about the paperwork that you will need to complete, have a look at the how to report contributions that you rollover – SMSFs page on our website. There are some examples on the left hand side that you should find useful.

 

As you will only be rolling over some of your super, you will need to ensure that your SMSF continues to meet its minimum pension payment requirements. You can check out the funds: starting and stopping a pension page for more information.

 

If you utilise the services of a tax professional to help you with your SMSF, we recommend that you get in touch with them to discuss what you are hoping to do.

 

Hope this helps.

 

Thanks,

 

ChrisR

5 REPLIES 5
Highlighted

ATO Certified

Devotee Registered Tax Practitioner

Replies 4

The ATO has a guide page which shows you with videos:

 

https://www.ato.gov.au/Super/Self-managed-super-funds/Winding-up/

 

Just follow the steps.

Highlighted

Newbie

Replies 0

Thanks for the reply but we are not really winding it up we are transferring to another super fund.

 

After the transfer we would then wind it up.

 

I also envisage that for a period of time we would have 2 funds going the smsf and the industry fund.

Would this be OK?

 

Is the process the same as per the video you posted?

Highlighted

Best answer

ATO Certified

Community Support

Replies 2

Hi @GregMolly

 

Welcome to our Community.

 

@Bruce4Tax has provided you with a useful link. We recommend that you have a good read of the information on our website.

 

You can have as many super accounts as you like. There are no rules that prevent people from being a member of a self-managed super fund (SMSF) and a member of an industry fund at the same time.

 

When you conduct a rollover from a SMSF to another super fund, you are not obliged to rollover your entire balance. You can rollover some of your balance in November this year and the rest in March 2021.

 

When you rollover your benefits to another super fund, as a SMSF trustee, you will be required to complete rollover benefits statements. As your super is in pension phase, you will also be required to complete transfer balance account reports (TBARs).

 

For more information about the paperwork that you will need to complete, have a look at the how to report contributions that you rollover – SMSFs page on our website. There are some examples on the left hand side that you should find useful.

 

As you will only be rolling over some of your super, you will need to ensure that your SMSF continues to meet its minimum pension payment requirements. You can check out the funds: starting and stopping a pension page for more information.

 

If you utilise the services of a tax professional to help you with your SMSF, we recommend that you get in touch with them to discuss what you are hoping to do.

 

Hope this helps.

 

Thanks,

 

ChrisR

Highlighted

Newbie

Replies 1

Than you Chris.

 

Just one further question I checked with Australian Super and they said that if I transferred funds it would initally go into a transition to retirement account. This would not incur tax?

Highlighted

ATO Certified

Community Support

Replies 0

Hi @GregMolly

 

Thanks for your reply.

 

It depends on what they mean by a transition to retirement account. You have indicated that you and your wife are in your late 60s. In turn, you have both met the 65 or more condition of release which means that you can have an income stream (pension).

 

When you have your super in an income stream (pension) account, the super is considered to be in retirement phase. As long as the minimum standards are met and minimum payments are made, any earnings are exempt from tax.

 

You can have a look at the income streams page on our website for more information.

 

When you have your super in an account that isn't paying an income stream, the super is considered to be in accumulation phase and any earnings are subject to the concessional 15% tax rate.

 

If you had advised that you were in your early 60s, it would have been reasonable to assume that the super fund was talking about a transition to retirement income stream account. These income streams aren't eligible for the tax exemption.

 

My recommendation is that you talk to Australian Super and find out what the account is. If it is an accumulation account, the earnings will be taxed. If it is an income stream account, the earnings won't be (subject to meeting the income stream requirements).

 

Hope this helps.

 

Thanks,

 

ChrisR