Tax treatment of income streams after 60 yrs age

I am wondering how various steams of income are taxed in retirement. I understand that after 60, superannuation income is taxed at 0%. How would the following sources of income be taxed after 60 yrs of age (as at today’s rules – understanding that this will change a billion times by my retirement age ):

• Income from superannuation fund (eg Australian Super, MLC, ING etc): 0% I understand?
• Shares held in personal name: Is this taxed at the marginal rate, or is it combined with the income through the super fund and the whole lot taxed at the marginal rate?
• Rental income: same as shares - at the marginal rate?

• How is CGT on an IP sale calculated after 60 (and has no ‘income’ apart from that through a super fund)?

I am trying to determine the benefits of establishing a super fund account to invest through vs. investing all funds into IPs/shares to enjoy both before and during retirement.

I will ask accountant about yearly accounting fees for investing through a super fund (eg Aust Super), however, tax treatments of super income during retirement appear to be the other big factor (to offset that this money is tied up until then…)

 

Over 60 yo, account-based pension, tax free. No need to include in personal income tax return because it's tax-free. I don't include it.

Dividends held personally. Taxed at marginal rates. Example, $60k fully franked ($25.7k @30%). Total income $85.7k. Tax $19.4k add Medicare $1.7K. Total $21.1k. Less Franking $25.7k. Refund $4.6k.

Nett property income is taxed in the same way I believe but no franking is involved.

As for property, no idea. Don't hold, and never have held, any IP's.

 

Lot of questions i think @Terry_w tax tips have discussed a lot of those issues.

 

This is gold , thanks @SatayKing

So 1 can have income from there AusSuper/HostPlus super (most popular atm) + divis from LIC's and on top can get refund. Happy days. I wanna be 60 soon lol nahh

What happens where someone takes early retirement?(normal tax % applies ?)

Seeking opinions not advise. - is it good to have smsf if one is planning to retire early or it doesn't matter!!

 

Try this:
https://www.superguide.com.au/smsfs/no-tax-retirement-sapto/amp

 

If you are aged 60 or over, your superannuation benefit is not included as part of your assessable income for income tax, unless you’re a member of one of the older public sector super funds (untaxed source). If you super benefit is from an ‘untaxed source’ some tax is payable on the taxable component of the benefit.

The superannuation rules delivering tax-free super for over-60s are not the only tax benefits that you can take advantage of in retirement. If you are aged 65 years or over, you may also be eligible for the Seniors & Pensioners Tax Offset (SAPTO), which effectively gives you access to a higher tax-free threshold, but is not available if your income exceeds a certain level.

From the link. Very useful @Indifference

 

From memory, a couple can earn nearly $188K if they are over 65, have at least $1.6M each in Super and $60K income outside Super (more with dividends).

One day I will get there ...

 

yes, great link, thanks @Indifference , must read multiple times for clarity (plenty of info).

 

After age 60 income is NOT tax free unless a pension is drawn. You likely need financial advice to implement these strategies effectively.

 

Accountants cannot give financial advice unless they hold a Australian Financial Services License (AFSL)...They arent qualified or licensed. . Its like asking your dentist for mechanical advice about a engine issue in your car.

 

but they can provide the tax implications of implementing any proposed strategies

 

Yes provided they dont mention using super, pensions, contributions, rollovers and anything about using a SMSF, public fund or fees and costs. Corp Regs basically limit what can be discussed. Either specific or general advice is caught (tier One or Tier Two advice needs a AFSL or a limited AFSL)

Like asking for tax advice from a bookkeeper. Its not allowed either. At best they can prep a BAS if registered

 

Thanks Paul. Was staring that I will ask if acct charges additional fees for yearly tax return when including investment through a super fund. I know my acct charges for investment through a trust structure.

 

Super is not a personal investment as each fund holds the investment and addresses tax. The trust (what even fund you use is a trust) pays the tax if any. The costs of each fund vary.

A individual who contributes may (or may not) be eligible to deductions for contributions.

 

if you have an SMSF yes there will be a seperate fee for the preparation of the SMSF Financials and Tax Returns