Pooled vs Segregated Assets SMSF




  1. Jude D'Cruz

    Hi Chris,
    My wife (61) & I (65) have a SMSF and have been drawing a transition to retirement pension for a number of years. The investments have been pooled thus far for simplicity and ease of administration. Is it possible to change to the segregated method to make use of the 0% tax on earnings post 65 in my case? Is this as simple as nominating the income generating assets to my account based on the end of year account balances? Can I revert to pooled investments in 3 years when my wife reaches the age of 65?

    • Chris Strano

      Hi Jude, you dont need to run segregated assets to have your portion of the savings receive tax free treatment. The administrator of your SMSF needs to know each of your respective member balances and then calculates the proportion of the taxable/tax-free earnings based on that.
      However, if you wanted specific assets to support your income stream and specific assets to support your wife’s accumulation account, then you would need to run a segregated strategy. You should speak to your Fund’s administrator/accountant to determine what needs to be done to segregate the investments. You will likely also need to update the Fund’s investment strategy.
      There should be no issue with reverting back to a pooled investment strategy when she reaches age 65.
      Be mindful that your Fund’s Trust Deed and Investment Strategy need to allow for segregated/pooled investment strategies.
      Related Posts
      What Is An SMSF Investment Strategy
      SMSF Pension Phase


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