Dear Paul, Thank you for re-explaining the CBA share buy-backs. What happens to holdings in SMSF, that have assets exceeding the “transfer balance cap” of $1.6 m and currently are partly in “pension” to the TBC and “accumulation” for the rest. The CBA holding “straddles” both.
A: Unless you segregate your assets, it will just be treated like any other sale (the assets don’t relate to your pension account or your accumulation account). The effective tax rate will be somewhere between 0% and 15% – basically in proportion to the balance in pension, and the balance in accumulation.
For example, if you had $1.6m in pension and $1.6m in accumulation, the effective tax rate would be 7.5%.
If you segregate your assets, then I would accept first from the pension phase
