Good News & Bad News, page-35569

The silver lining for my personal circumstance is, in January, I enter the 60’s. Time to transition my SMSF from accumulation phase to Pension phase. With the share price being hammered, I can now transfer many more PLS shares to pension phase than I expected to. By doing this, I not only get all the franking credits, but any share sale avoids paying capital gains tax, which would have been 10% in accumulation phase having held them longer than 12 months.

The remaining assets in accumulation I’ve started rebalancing into my better half’s pension until I max out her cap limit. I can transfer $110k per year as a non concessional contribution. There is also a bring forward rule where you can trigger a 3 year non consessional contribution in 1 year, however once triggered, that’s it for any further contributions apart from the downsizer option.

After 2025, depending on how the PLS SP goes, I will have to manage the $3M super cap that is proposed where they want to tax the fortunate ones on unrealized capital gains, a first for our tax system if it passes through parliament.


Something to think about for those of you in a similar situation and age.