Self-managed super funds can give trustees more control over the taxation of their super funds, but as with all aspects of SMSF, some rules apply. For tax purposes, SMSF is treated in the same way as mutual funds, industry, and corporate funds.
However, with SMSF you have more control over tax matters. SMSF trustees' control and flexibility over your SMSF investment decisions allow them to determine when to sell assets, which could affect tax payments. For more information about SMSF tax return, you can explore this link.
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The current tax rate on pension fund gains (including SMSF) is 15%, but if the income comes from assets that fully cover the income stream, such as pensions, the IMF will not owe any tax on that income.
The ATO outlines the revenue forecasts for the relevant SMSF, which include:
1. Employer and personal deductible contributions
2. Interest, dividends, and rent
3. Net capital gains (less total capital losses; and less than a third withholding tax on capital gains for assets held for one year or more).
Australian tax laws concerning SMSF are very complex, so you will need to ensure that your accountant, financial planner, or financial advisor is qualified to advise you on specialization in SMSF. When you know what you can (and can't) do, you can have the control and flexibility of SMSF.