Tax and Structures
Superannuation taxation
An exercise on super tax
You’ll see on the opposite page the taxable income for the super fund. Note there were no deductions for expenses.
You will see that the two changes are:
- the capital gains that were incurred on investments held for over 12 months were reduced by one-third from $21,000 to $14,000.
- franking credits of $3,000 were added to taxable income.
The bottom table shows the tax calculation for the super fund. The franking credits received by the super fund, are added to assessable income but also reduce the amount of tax payable.
The tax rate in the pension (drawdown) phase of superannuation is currently 0%. If the fund was paying a pension and received the same income, excluding the super contributions, the tax payable would be zero.
Please note that tax may be payable by an individual under age 60 (or from an untaxed scheme, such as a government super fund) when the pension is eventually paid as income.
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