I have several super accounts, 1 DBS and 2 income streams (IS). The second IS account was created to receive funds from the first IS. The first account with say 700k, is now $150k. The rest has been withdrawn over a number of years, and then become non-concessional or after tax contributions to the second IS. My Taxed vs Non-taxed components have shifted from 60:40 to 90:10. So at this point only 10% of my super will be taxed if passing to non-dependents.
Now as has been discussed, you can't just roll money into an existing IS. So the transfer and contribution caps come into play, and each withdrawal is allocated proportionally on taxed/untaxed, so the "washing" as someone put it is progressive over time. At one stage the bring forward rules allowed me to pull out $300k in one year, but this was three years worth so the next transfer awaits expiry of that period. So after 30/6/24 I can pull out non-concessional contributions up to the cap of $120,000. I will then finish up with a very small account of around $30k that has a taxable component, and an account of about $700k that is fully taxed. Then it all stops at age 75.
Now this is as it has been explained to me, I am not an expert, and I have to say making BPAY payments to the fund of up to $300k was an interesting experience.
