An SMSF is a great tax-effective way to save for your retirement benefit. The tax in an SMSF is generally

  • 15% during the contribution stage
  • 0% in the retirement stage


Tax effects during the accumulation phase

An SMSF generally pays tax at 15% for income in the SMSF but would not pay tax on roll overs into the SMSF or non-concessional contributions (after tax money) added to the Fund. There are generally 3 ways to add money into the SMSF which are:

Concessional contributions
Non-concessional contributions
Roll overs into the SMSF


Tax effects during the pension phase

Pension payments
Lump sum payments


Tax on investment returns

Capital Gains


Tax on withdrawals

The tax effects on withdrawals are as follows:

  • Pensions – Not taxable
  • Transition to retirement – add the taxable component to your personal tax return
  • Terminal illness withdrawal – not taxable

The ATO gives a summary of the tax affects of lump sum payments in the summary table here.

For more info on how your SMSF pays tax, please watch the video below.



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We are Melbourne based with clients throughout Australia. Our SMSF administration service is mostly paperless. This enable us to charge a fair fee, resulting in a good value-proposition for you.

No Advice

Superannuation Warehouse is an accounting firm and do not provide financial advice. All information provided has been prepared without taking into account any of the Trustees’ objectives, financial situation or needs. Because of that, Trustees are advised to consider their own circumstances before engaging our services.