Welcome clarity on CGT election dates
It is now clear that SMSFs, which are unable to lodge their 2016-17 returns by the statutory due date, may still be eligible for the CGT relief if they have been approved for an extended lodgement date, according to one admin firm.
SuperConcepts general manager of technical services and education Peter Burgess noted the importance of funds lodging their returns on time in order to be eligible for the CGT relief was raised by ATO deputy commissioner of superannuation James O’Halloran recently.
In his speech, Mr O’Halloran said the law currently requires that an election for the relief must be made on or before the day the SMSF’s 2016-17 annual return is due to be lodged.
“Therefore, it is very important that SMSFs do not lodge late and miss this opportunity to take advantage of this CGT relief,” he said.
Mr O’Halloran indicated in his speech that this raises an issue with the timing of the election where an SMSF has been granted an extension to lodge their 2016-17 return.
Mr Burgess said the ATO is looking to apply a practical approach here, however, so the ATO will accept a deferred lodgement date where one has been granted.
“While it will be important for SMSF trustees to lodge their 2016-17 returns by the statutory due date, if they are not going to be able to do that and they want to be eligible for CGT relief, they will need to apply for and receive an extended lodgement date from the ATO,” said Mr Burgess.
“So if you have applied for an extension and you’ve been granted that extension, then for the purposes of claiming CGT relief, it’s acceptable if you lodge by that extended date.”
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 also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.