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Taxation of superannuation funds

Tax on a non-complying fund

Section: 11.3

If a fund receives a notice from APRA stating that it is a non-complying fund. The non-complying fund is taxed at the rate of 45% for 2020-21.

Not only the non-complying fund is taxed at a higher rate it is also denied the following concessions:

  • certain special CGT rules,
  • death and disablement insurance deductions
  • exemption of income related pensions deductions
  • ability to transfer contributions tax liability
  • ability to exclude "last minute" employer contributions from fund income
  • refund of excess franking credits

This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements. 

Last modified: Friday, September 25, 2020