While most SMSF trustees are aware of the capital gains tax relief provided by the super reforms, some are under the false assumption the relief is automatic, according to Perpetual.
Perpetual Private head of strategic advice and professional development Colin Lewis says there are many decisions SMSF clients need to make in the lead-up to 30 June, but many trustees are confused on some of the finer details relating to the CGT relief.
“I think the biggest thing people need to realise though is that it’s not automatic. It is an irrevocable election that needs to be made and that can be done anytime up until the fund’s return goes in for the 2017 year,” Mr Lewis said.
“This is something that needs to be thought about and decisions need to be made.”
He said SMSF trustees are also confused by how the timing of when the CGT relief applies will differ based on how the assets in their fund are structured.
“Depending on whether the fund uses the segregated or proportional approach will dictate when the relief applies from,” Mr Lewis said.
“For example, CGT relief on the segregated assets applies anytime from 9 November to the 30th of June, whereas if it’s unsegregated or proportionate, it will apply on the 30th of June and then a decision needs to be made as to whether you apply for the current year or whether you defer.”
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 17 Aug 2017Industry questions ATO’s capacity for new reportingBy Miranda Brownlee
- 17 Aug 2017Qld succession law changes tipped to impact SMSFsBy Miranda Brownlee
- 16 Aug 2017Contribution limits restricting future balances, warns mid-tierBy Staff Reporter
- 16 Aug 2017SMSF firms underprepared for events-based reportingBy Miranda Brownlee
- 15 Aug 2017SMSF auditor disqualified for misconductBy Staff Reporter
- 15 Aug 2017Class gains market share in financial year resultsBy Staff Reporter
- view all
- Industry questions ATO’s capacity for new reporting
With events-based reporting set to generate huge amounts of data, concerns have been raised about whether the ATO’s systems will be able t...read more
- Contribution limits restricting future balances, warns mid-tier
Clients hoping to accumulate a superannuation balance of $1.6 million by age 65 will need to start taking full advantage of concessional con...read more
- SMSF firms underprepared for events-based reporting
A straw poll has revealed that the majority of SMSF firms currently feel their firm is not equipped to deal with the proposed events-based r...read more
- view all