Intax --- Page: 16-18 : September 2007 Original article by Kym Bailey
LexisNexis Summary
Estate planning should be taken into account with respect to self-managed superannuation funds. It is not widely realised that for an Australian receiving a tax-free super income stream, no tax applies to the income on the pension capital. Once the fund member dies, however, assets sold to cover the death benefit can attract the capital gains tax. When the remaining proceeds of the fund are allocated to a non-dependent, the so-called "taxable component" of the sum attracts a tax rate of up to 16.5 per cent.
