ato logo
Search Suggestion:

Tax exemptions in the retirement phase

If a SMSF is paying retirement phase income streams, some or all of its income may exempt from tax.

Last updated 14 August 2018

A complying self-managed super fund (SMSF) normally pays tax at the concessional rate of 15%.

An SMSF can receive further tax concessions once it begins paying superannuation income streams (commonly known as pensions) that are in the retirement phase.

Investment income a SMSF receives from its assets is tax exempt to the extent that those assets are supporting retirement phase income streams. This income is called exempt current pension income (ECPI).

You can claim ECPI in your SMSF annual return once your SMSF begins paying one or more retirement phase income streams. However, your SMSF is not automatically entitled to ECPI – there are steps that you must take to be able to claim it.

Next step: