I turned 56 last year and have converted my SMSF from accumulation over to pension mode. My accountant has done a calculation and advised me I am able to draw down a pension of $65,000 PA. I believe that I must withhold 15% of this amount which equates to $9,750 PA
I have yet to do an audit or tax return but intend to do so in the next week or so but wish to clarify a couple points in relation to my fund so I don't feel such a fool in front of my accountant.
My SMSF has a mixture of high yield investments which include franking credits. I have only sold one or two stocks this financial year returning a small capital gain ($5000) to the fund.
My SMSF returned approx $60,000 in dividends and the franking credits total approx $15,000
As I am under the age of 60 I would like to know what are the tax implications on the investment returns including capital gains on transactions within the Fund. ie. do I pay 15% tax on investment profits made within the fund and what about capital gains is it the same??
I am asuming that my tax payable will be the total of the pension amount ($9750) plus what ever happens tax wise on the ($60,000 & $5,000) within the fund, minus the franking credit rebate of $15,000
