With the recent severe setbacks to our accumulated super is there
any adjustment mechanism for losses?
Q.
I understand that interest on my super is taxed at 15% less
adjustments for franked credits etc. With the recent severe
setbacks to our accumulated super is there any adjustment mechanism
for losses? When the market starts to move again are we again taxed
15% as we regain our former position?
A.
Most of the losses in super are capital losses due to the share
market falling. In most cases the shares are held awaiting recovery
so no capital loss is triggered. Consequently, when the market
recovers, the increase in value will be tax free.
Each week financial advisor Noel Whittaker answers your
questions.
