What Do SMSF Trustees Need to Know About Capital Gains Tax in 2025?
- georgia3841
- May 19
- 2 min read
Capital Gains Tax (CGT) can have a significant impact on the returns of your Self Managed Super Fund (SMSF), especially when selling property or shares. Many Australians use their SMSF to invest but aren’t fully aware of how CGT works within the fund or how to minimise it.
One of the most important distinctions is whether your fund is in accumulation phase or pension phase, as this determines the tax rate applied. A common myth is that SMSFs are always exempt from CGT, but this is not the case. Understanding when CGT applies and how to manage it can help you protect your retirement savings and reduce your tax bill.
1. Do SMSFs Pay Capital Gains Tax?
Yes, but it depends on the fund’s phase:
Accumulation Phase CGT is applied at 15%, but SMSFs receive a one-third discount if the asset is held for over 12 months. This brings the effective tax rate to 10%.
Pension Phase If the asset supports a retirement-phase income stream, the capital gain may be fully tax free.
Tip: Moving to pension phase at the right time can significantly reduce CGT. Working with a financial planner can help you time this transition wisely.
2. CGT Discount for SMSFs
Unlike individuals who may receive a 50% discount, SMSFs receive:
A one-third discount on capital gains for assets held longer than 12 months.
No discount on gains from assets held less than a year.
Tip: Holding SMSF investments for more than 12 months can cut your CGT bill.
3. Capital Gains on Property and Shares in an SMSF
The same CGT rules apply to both direct property and listed shares:
Held less than 12 months: Taxed at 15%
Held 12+ months: Effective tax rate of 10% after discount
In pension phase: May be taxed at 0%
Don’t forget to factor in CGT before selling any SMSF-held property.
4. What About Members Over 60?
If you’re over 60 and your SMSF is in pension phase, CGT may be fully exempt for the portion of assets supporting retirement income streams.
However, only assets tied directly to pension payments receive this benefit and the rest may still be taxed at the standard SMSF rates.
5. Common Questions and Best Practices
Can an SMSF carry forward losses? Yes. Capital losses can be used to offset future capital gains.
When is the SMSF tax return due? Usually, 15 May if you're lodging through a registered tax agent.
How often should SMSF property be valued? At least every 3 years, or sooner if the market changes significantly.
We work closely with trusted financial planners to help you make strategic decisions around CGT and retirement planning.
Thinking about selling property or shares in your SMSF? Wondering how CGT will affect you?
Book your FREE 15-minute discovery call with our team at RISE Accountants today. Let’s make sure you’re not paying more tax than necessary.