Inside Super: Capital Gains Tax Planning for Australians Aged 30–55.

Selling investments like shares or property outside of super can trigger significant capital gains tax (CGT). But when those assets are held within your super fund, they’re subject to much lower tax rates—and in some cases, no tax at all. For Australians aged 30–55, understanding how CGT works inside super can unlock powerful savings and boost your retirement strategy.

CGT Inside Accumulation Phase Super

During your working years, most super is in the accumulation phase. In this phase, investment earnings—interest, dividends, and capital gains—are taxed at a flat rate of 15%. However, if an asset is held for more than 12 months, the fund receives a one-third CGT discount, reducing the effective tax on capital gains to just 10%.

That’s a stark contrast to the top marginal tax rate of up to 47% outside super, making accumulation-phase super a tax-smart environment for long-term investing. This discount applies equally to large APRA funds and self-managed super funds (SMSFs), provided the asset meets the minimum holding period from acquisition to sale contract date.

Zero CGT in Pension Phase

Once you satisfy a condition of release and commence a retirement-phase income stream, investment earnings—including capital gains—on assets supporting that pension become entirely tax-free.

This exemption makes the pension phase one of the most powerful wealth-building tools in the Australian super system. However, if your fund holds both accumulation and pension assets, the exemption applies proportionally—unless assets are formally segregated. In those cases, careful documentation and actuarial support may be required to claim the Exempt Current Pension Income (ECPI) accurately.

Strategic Timing to Maximise CGT Discounts

Timing matters. Selling assets held less than 12 months means missing out on the CGT discount, resulting in a flat 15% tax. For instance, delaying a sale by even a few weeks to cross the 12-month mark can reduce the tax payable on the gain by a third.

Super funds may time disposals in accordance with the 12-month CGT discount eligibility, where aligned with the investment strategy and risk profile.

Using Contributions to Offset CGT Outside Super

If you sell an asset like property or shares and trigger a capital gain outside super, one smart way to reduce the tax impact is to make a personal deductible contribution to your super fund. While this doesn’t directly offset the CGT, it reduces your overall taxable income, helping to soften the tax burden.

For example, contributing $10,000 and claiming it as a tax deduction could save $3,900 in personal income tax if you're on a 39% marginal tax rate. That contribution is taxed at just 15% inside the fund, offering a tax-effective way to move wealth into super.

To use this strategy:

• Lodge a valid Notice of Intent to Claim with your super fund.

• Receive acknowledgment before submitting your tax return.

• Ensure your total concessional contributions (including SG and salary sacrifice) stay within the $30,000 annual cap.

This approach is especially valuable in years when you sell an investment and want to minimise your tax while growing your retirement savings.

Key Points Recap

• Accumulation Phase CGT: 15% tax on gains, reduced to 10% after 12 months via the CGT discount.

• Pension Phase: Capital gains on assets supporting an income stream are tax-free.

• Timing: Holding assets for more than 12 months before selling can significantly reduce CGT.

• Contribution Strategy: Making a personal deductible contribution after a gain can reduce taxable income and build super tax-effectively—subject to contribution caps.

Super isn’t just a retirement savings tool—it’s a tax-optimised environment that rewards long-term, strategic planning. Understanding how CGT works inside your fund can help you decide when to sell, how to contribute, and how to maximise what you keep. For Australians in their 30s to 50s, these choices now can compound into substantial tax-free growth later.

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute financial, tax, or investment advice. We recommend speaking with a qualified financial adviser before making any decisions regarding your superannuation. Every individual’s financial situation is unique, and personalised advice is essential to ensure the best outcome for your specific circumstances.