Taxation in Accumulation Phase

As previously outlined, all concessional contributions, whether made by an employer on behalf of an employee or made as a personal contribution directly by the member, are subject to a 15% contributions tax. The contribution received by a super fund actually forms part of the assessable income of the super fund.

Any investment income in the accumulation phase is also included in the assessable income of the super fund and subject to a maximum tax rate of 15%.

Super funds receive a 1/3 tax discount on capital gains where the asset is held for longer than 12 months. This brings the ‘effective tax rate’ on capital gains within super funds to only 10% (ie. two thirds x 15%).