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SMSF Updates

Tax Free and Taxable components of Superannuation Benefits

02 Aug, 2012

As a member of a SMSF, your benefits normally comprise a Tax Free Component and a Taxable Component. You can see these two components in the Member Statements that iCare Super provides to you.

Tax Free component consists of:

-A contributions segment, which will consist of non-concessional contributions, made from 1 July 2007

-A crystallised segment, which will consist of existing undeducted (non-concessional) contributions, pre-July 83 component frozen at 30 June 2007, the concessional component, CGT exempt component and the post June 1994 invalidity component.

-The Tax Free proportion of pension members earnings from 1 July 2007

Taxable Component consists of:

-An element taxed in the fund which will be equal to the total member benefit less all other components (i.e. tax free and taxable – untaxed element)

-An element untaxed in the fund which usually arises from Lump Sum roll overs from public sector superannuation plans where tax has not been paid on contributions or earnings. This rollover will be taxed upon entry into a SMSF

-The allocated earnings: all accumulation members earnings and pension members earnings reduced by the Tax Free proportion already included in the Tax Free Component.

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