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Taxation of super funds

Taxation of capital gains in super

Section: 6.3

Date of asset
acquisition
Accumulation phase Pension Phase*
Before 1 July 1988 All assets of the fund owned on 30 June 1988 are deemed to have been acquired on 30 June 1988. Cost base is the greater of market value at 30 June 1988 or original purchase price. Maximum tax on capital gain is either:
  • 15% x (sale proceeds - market value on 30 June 1988 indexed to 21 September 1999, i.e cost base frozen at 30.09.99), or
  • 2/3 x15% x (sale proceeds - original purchase price) #
Nil
On or after 1 July 1988 but before 21 September 1999
  • 2/3 x 15% x (sale proceeds - original purchase price) #, or
  • 15% x (sale proceeds - indexed cost base frozen at 30 September 1999).
Nil
On or after
21 September 1999
 
  • 2/3 x 15% x (sale proceeds - original purchase price) #
Nil*

* Current pension assets are exempt from capital gains tax. See ATO ID 2004/688 for issues around current pension assets.

# The 1/3 CGT discount that super funds receive on realised capital gains is subject to the asset having been held for at least 12 months.

If the fund chooses the CGT discount, capital losses will be applied against capital gains before applying the discount. If the fund chooses the indexation method, capital losses will be applied after calculating the capital gain using the indexed cost base, with indexation frozen at 30 September 1999.

Last modified: Monday, October 9, 2017