SMSF Rollover

A SMSF rollover benefit from another fund is not included in the assessable income of your fund, unless the rollover amount includes an ‘element untaxed in the fund’.

If it does contain an untaxed element, you include the amount of that element in the assessable income of your fund – up to the untaxed plan cap amount – in the income year the rollover occurs.

If the untaxed element exceeds the untaxed plan cap, the originating fund should withhold tax – at the top marginal rate plus Medicare levy – from the excess before releasing the rollover to your fund. You add this now-taxed amount to the tax-free component of the rolled-over amount.