Different tax rate applies to the taxable income in an SMSF based on the following circumstances:
Basically, there are four tax rates apply to the income in an SMSF, eg 15%, 10%, 0% and 45%.
What income 15% tax rate will be applied?
If the SMSF member balance is accumulate phase or has commenced a transition to retirement pension, 15% tax rate will be applied to the below income:
What income 10% tax rate will be applied?
What income 0% tax rate will be applied?
If the SMSF member pension phase, 0% tax rate will be applied to the below income:
What income 45% tax rate will be applied?
Non-arm’s length income will be taxed at 45% regardless whether the member balance is in accumulate mode or pension mode or not.
Normally non-arm’s length income include the following: