Will my super pension still be tax-free if I have $3 million plus?
The tax-free status of super pensions will not change because Division 296 is levied on individuals whose total super balance exceeds the $3 million and $10 million thresholds.
Q: I have a question about the new superannuation rules and how they will work in the pension phase regarding tax. I keep hearing that when you start a super pension, there is no tax – what does this mean? I understand there are new taxes in relation to someone with $3 million, $10 million and more than this in accumulation phase. But what if you have your super in a pension? How much pension will you be required to withdraw and what tax will you pay? Wieber
A: Your question highlights an interesting aspect of the new Division 296 super changes: What, if any, effect they may have on the taxation of superannuation pensions.
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John Wasiliev is a veteran SMSF specialist and has provided answers to readers' questions on superannuation for decades. Have a super question you'd like answered? Email John at superquestions@afr.com
