Budget effects upon super

Peter, many thanks for your summary on budget effects upon super.

If in one of your points a self funded retired pensioner has say $2.0M in their super and decides to take a lump sum of $400k to get down to the cap, can they not earn out of super up to $18k on the $400k before any tax is payable, but if it goes into an accumulation fund tax is owed at 15% on any yield earnt on the $400k?

A: Sure, they can earn up to $18,200 out of super – tax free.
Of course, this applies to all income – and most retirees would usually have some income already from outside super.


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