1) If I have a term deposit in my SMSF but convert it to pension...

1) If I have a term deposit in my SMSF but convert it to pension the day before the interest is paid then the interest is tax free.
Then the next day I convert the term deposit back to the pension.

In this way I have effectively avoided the 15% earnings tax in the accumulation phase - with a very small pension being paid (1 day of 365 x 4%)

According to the ATO and others this seems perfectly ok !!

But isnt this tax avoidance??

2)Capital Gains - the same arguement appears to hold here?
On the day you want to sell your shares just shift them into the pension phase the day before and bingo all tax free.

All it sems to require is a quick 1 line minute in the minutes to convert it to pension and the next day is a quick minute to convert it back to accumulation

OK so where have I got all this wrong - seems too good to be true.

Is there any info on the ATO/ web talking about this ??

(Note Ive only been a trustee for 3 months so im a definite novice!)