even a small fund can attract the higher tax

swan and labor are trying to pull the wool over your eyes again
it is not restricted to a fund with 2 million in assets
even a small fund with 300k or less is potentially liable
and can be subject to the higher 30% tax

all it needs is a capital gain to boost the taxable income to send it over the edge, over the 100k limit

the Head of the Chartered Accountants, Superfund Committee
has confirmed this with an example (she was on abc radio national this morning)

she gave the example of, like many small funds in recent years, they have purchased real property, then found it doubled or more in price within a short period, and been sold. The capital gains in many cases has exceeded the 100k limit.

she said there have been many changes to super in the past 5 years, together with the gfc, which has sent many funds to invest in property for the long term.

similarly, when the stock market rebounds in the future, those same small funds can expect to make capital gains, that can send them over the income limit

so forget about the mantra of expecting 5% as the benchmark for income, into believing you are safe from the higher tax

the majority of smart investors also expect to post capital gains on their assets, they do not only look for the ordinary income of rent, interest or dividends fixed at around 5% as the premium strategy