Largely correct, and would be the case for most people. You also need to allow for the 'Transfer Balance Cap', which limits the amount to be moved to 'Pension' mode. For example :
- At time of a buyout you are 59, holding RAC within your SMSF, and the value of those shares after the buyout is $2mill.
- You turn 60, and retire. You can move $1.6mill into 'pension' mode, the remaining $0.4mill must remain in 'Accumulation' mode
- You would pay no tax on any future earnings on the $1.6mill in pension mode. You would still be taxed on future earns from the $0.4mill left in 'Accumulation' mode.
Not a bad problem to be dealing with if that's where you end up though.
The real kicker is to get into 'Pension' mode before a RAC buyout :
- Own $100K shares now in SMSF
- Turn 60, retire, enter 'Pension' mode and transfer the full $100K
- RAC buy out happens after you make the transfer to 'Pension' mode. A 10x result perhaps, so your holdings are now worth $1mill. The tax you pay on this buy out would be zero, since it occurred after the move to Pension mode.
Largely correct, and would be the case for most people. You also...
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Last
$1.58 |
Change
0.055(3.62%) |
Mkt cap ! $268.4M | |||
| Open | High | Low | Value | Volume |
| $1.56 | $1.61 | $1.56 | $106.0K | 67.13K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 649 | $1.58 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.59 | 3000 | 1 |
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| Last trade - 16.10pm 08/11/2024 (20 minute delay) ? |
| RAC (ASX) Chart |