This time I was informed that tax would be incurred on the accrued interest in the accumulation phase. !!
ie if a 1 year term deposit was transfered to the pension phase after 6 months then only 6months of the interest(paid at the end of the year) would be tax free.!!!
Thats the complete opposite - so now Im really consufed!
I suppose it would make more sense if the tax on interest was prorata for the time it was in the accumulation phase.
But was the ATO correct? Any links to how Term Deposit earnings are tax treated??
