Self Managed Super Funds

self-managed-super funds

The Government changed the regulation in 2007 allowing you to borrow inside of superannuation and use your existing superannuation as a deposit.

SMSF’s are the fastest growing superannuation sector seeing remarkable numbers of Australians migrating across to the SMSF space.

SMSF’s allow you to take control of your superannuation and invest your money where you see fit. In particular, a SMSF can give you the ability to take your standard superannuation and convert it into an investment property.

Our initial client meetings generally uncover that our clients existing retail or industry superannuation funds are predominantly invested into the share market resulting in positive or negative results based on the share market performance.

We typically find that our clients preference in regards to their retirement nest egg is to be invested directly into SMSF = Property rather than Retail or Industry Superannuation Funds = share market.

SMSF gives you the ability to take your standard superannuation and convert it into a residential investment property.

Transition To Retirement Strategies

Transition to retirement strategies = less tax and more in your pocket!


You can access a transition to retirement pension of between 4-10% of your account balance if you’ve reached preservation age (currently 55) and you are still working.

Tax treatment

If you are under 60, part of your pension payments will be taxed, but you may receive a 15 per cent tax offset on the taxable component. Once you have reached age 60, all pension payments are tax-free including lump sums.

How does the Transition to Retirement Strategy work in practice?

Case study

John is 60 and earns $70,000 p.a. He has accumulated $140,000 in his superannuation fund. With the help of his Senior Financial Planner, John is keen to implement a Transition to Retirement Strategy whereby he elects to salary sacrifice $18,000 p.a. and draw a superannuation pension of $14,000 p.a.

Gross Salary $70,000 $70,000
9.25% Contributions $6,475 $6,475
Salary Sacrifice $18,000
Super Pension $14,000
PAYG Tax Paid $15,378 $9,3218
Net Cash $54,622 $56,782
Change In Net Cash $2,160
Superannuation Asset $145,504* $146, 804**
Increase In Super $1,300
Net Benefit Of Strategy $3,460pa
Tax On Earnings Savings $5,250***
Benefit Of Strategy To Retirement $22,550

*Balance of $140,000 plus super contribution of $6,475 (less 15% contribution tax)

**Balance of $140,000 plus super contribution of $24,475 (less 15% contribution tax) less $14,000 in pension payments

***Additionally, the income earned by the assets of the fund would no longer be subject to income and capital gains tax of up to 15%. eg. 5% earnings on a balance of $140,000 attract tax of $1050p.a, which would not be payable in pension phase.

In the above scenario, this would improve the overall benefit to retirement by approx. $22,550.

People with higher balances and taxable income will have higher tax savings.

Seek Professional Advice

Transition to retirement provisions can mean reducing your working commitments and pressures without necessarily reducing your standard of living. There are, however, various levels of complexity and the strategy is not suited to all investors.

Only a Financial Planner can help you determine the best approach for you. Ensure your retirement planning is on track by seeking professional advice.