I am a self funded retiree with a self managed super fund, my...

I am a self funded retiree with a self managed super fund, my fund is in pension mode. All earnings from my fund are tax free, provided my fund has a balance below $1.6 million, (recently introduced by the government.) Prior to that you could have any amount in your fund, and pay no tax at all, provided your fund was fully in pension mode. So if I exceed the $1.6 million cap in my pension, earnings on any amount over the $1.6 million cap are taxed at 15%. So getting a grossed up return of over 9% with Telstra is very attractive to many in this position.