“I was made aware of an incoming substantial distribution from a property trust that I had an investment in and I wanted to minimise the tax implications within my superfund.”*

The situation

Our client was about to receive an incoming substantial distribution from a property trust. While this is good news, if not handled correctly there would have been major tax implications for the superfund. They called us in advance to discuss the situation, not so much in hope that they could save tax, but just so we were aware of their circumstances.

Our client called us as our experience and knowledge of the complex and ever changing penalties for trustees of SMSF’s gave our client peace of mind.

The result

Our experience and knowledge of SMSF’s and the complex rules and legislation helped us to identify an opportunity to save a significant amount of tax on this transaction.

To minimise the tax implications within the superfund we reviewed our client’s combination of timing, age and circumstances to allow him to commence a ‘transition to retirement pension’, which allowed $650,000 of income to have no tax implications.

Ultimately that phone call saved our client $65,000 in tax.

*This client has chosen to remain private.