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Robo-advice provider to launch CGT relief tool

Robo-advice provider to launch CGT relief tool

Miranda Brownlee
06 April 2017

An automated advice provider is set to launch a new advice module, aimed at unlicensed accountants and their clients, for dealing with CGT relief.

Plenty Plus plans to launch the new CGT relief tool before 30 June. The tool will determine whether an SMSF client should apply the CGT relief to certain assets and how exactly they should apply the relief. 

Plenty Plus co-founder Greg Einfeld said the new module will pull in data about every asset including the purchase price of each asset parcel as well as the age of each client, whether the client is retired or when they plan to retire, when they plan to sell each asset and whether that’s before or after retirement.

It will also analyse information about the different balances in the fund and the amounts in accumulation, pension and transition to retirement, whether the fund uses the segregated or proportional method, and whether assets are in an unrealised gain or an unrealised loss.

Once the system has all this information Mr Einfeld said it will calculate “whether the fund should be claiming relief on each individual asset or whether they should be deferring the payment of the tax”.

He said one of the main difficulties for unlicensed accountants is that in order to understand whether the client should apply the relief, the accountant needs to understand whether their client is going to be starting pensions, when they are going to be commuting pensions and when they’re going to be selling assets in the fund.

“You need to be a financial adviser to advise on all of those things. So it does become difficult for accountants to provide advice on CGT relief on its own unless they’re licensed,” he said.

“I think this module will solve a large problem for a lot of accountants because there’s so much confusion.”

Robo-advice provider to launch CGT relief tool
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