subscribe to our newsletter
More traps flagged with CGT rules

More traps flagged with CGT rules

Miranda Brownlee
07 February 2017 — 1 minute read

SMSF trustees are, in some cases, inadvertently transitioning their fund from unsegregated to segregated and consequently losing their ability to claim the CGT relief.

SuperConcepts general manager, technical services and education, Peter Burgess says a recent trap that has emerged with the CGT relief is where a fund that was unsegregated at 9 November moves fully into pension phase at some point between 9 November and 30 June 2017.

“If the fund becomes a segregated fund, they compromise their ability to claim relief on those assets,” Mr Burgess told SMSF Adviser.


“So it’s not a good idea for people who were unsegregated at 9 November to convert to a segregated fund now.”

However, SMSF trustees may do this inadvertently.

“We came across a fund where one member was in the accumulation phase and another was in pension phase and some time between the 9th of November and the 30th of June 2017, the other member moved into the pension phase so that the fund then by default became a segregated fund,” Mr Burgess said.

“What they’ve done is lost their ability to claim the CGT relief on those assets.”



More traps flagged with CGT rules
smsfadviser logo
join the discussion

Which political party will deliver better outcomes on superannuation policy?


Get the latest news and opinions delivered to your inbox each morning

In this month's issue:

  • Time wrap
  • The tech bull run
  • From hobby to passion
  • Golden Years
  • An untimely reminder
  • Why change is so difficult
  • Key Strategies for equalising super