Author Topic: SMSF what if big difference in spouse age - do we need 2?  (Read 3499 times)


  • 5 O'Clock Shadow
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SMSF what if big difference in spouse age - do we need 2?
« on: September 19, 2017, 08:57:02 AM »
Hi SMSF experts

So we are looking at a SMSF now. The main reason is when I compare how our super funds (even lowish cost ones) are doing we are leaving quite a lot of money on the table. I started investing with sunsuper over the last 12 months and have a similar amount outside super. I chose sunsuper as vanguard apparently manage their index funds. However the return from our vanguard funds outside super( similar composition) has been 18% (after factoring in CGT and after tax - and after fantastic franking credits). Sunsuper has returned 10%. And my 2 other funds have returned 10% (0.76% management fee) and 5.5%.

Even if sunsuper is low cost the management costs (0.11) are similar to some of these on line SMSF anyway now. And it can only get worse as the balance increases.

My partner can enter pension phase in 3 years. I am 16 years off. So is it possible to keep his money separate in a SMSF and transition this to pension phase first? Keep mine in accumulation phase till I reach 60. Is this easily done or should we have 2 funds. I guess a potential problem is then you might have more than 1.6 in pension phase as we hope not to chew through 1.6 million in 16 years.
What have other people done?

Also if anyone has advice about corporate trustee structure vs individual I am happy to hear it.
Also has anyone got plans to travel overseas when they retire and how do you transition to a small APRA fund without triggering a CGT event? All these grey nomads and retirees in Bali - how do they do it? Maybe they just all pretend to still be living in Australia.


  • Bristles
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Re: SMSF what if big difference in spouse age - do we need 2?
« Reply #1 on: September 19, 2017, 12:32:43 PM »
Sure, your partner can transfer money into a pension account that is paid to him while you still contribute to an accumulation account.

The $1.6m cap for tax-free pensions is per person.

Corporate trustee.   Don't even think about individual trustees.  For an extra grand setup costs you get the benefits of a corporate trustee.    A quick google search will tell you what these are.


  • 5 O'Clock Shadow
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  • Posts: 96
Re: SMSF what if big difference in spouse age - do we need 2?
« Reply #2 on: September 20, 2017, 02:45:21 AM »
Thanks MJR,

Yes my google searching has convinced me of the benefits of a corporate trustee structure. Surprising that only 25% of funds do this.
So then the issue is what happens when we retire. No problem for him - he retires, transfers his 1.6 to pension phase, sells up his shares and transfers the balance to an APRA fund without incurring a CGT event.

I have to wait another 10 years till preservation age to avoid CGT. I know some will say just pay the taxes but if there is a way of optimising this I would be foolish not to explore it. I know the APRA funds are robbing us somehow as my own experimentation outside of super has shown markedly better returns despite having to pay taxes.

Does anyone have an idea about who they might pick to change to a small APRA fund if they go overseas or travel indefinately. There must be someone here who is considering/doing this.


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