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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.”



Miranda Brownlee

Miranda Brownlee


Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.

Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years. 

Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.

You can email Miranda on: This email address is being protected from spambots. You need JavaScript enabled to view it.

More traps flagged with CGT rules
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