In a public statement, the ATO explained that the deadline for electing to claim capital gains tax relief is the due date for lodgement of the fund’s 2017 annual return.
“For some funds, this may be as early as 31 October 2017,” the tax office said.
“You need to consider whether you should make an election for the transitional CGT relief to apply for assets held by your fund, throughout the period 9 November 2016 to 30 June 2017.”
The CGT relief is available for SMSFs to provide temporary relief from certain capital gains that might arise as a result of their compliance with the transfer balance cap and the transition-to-retirement income stream reforms, the ATO said.
“If you wish to apply the transitional CGT relief, you must make an election using the approved form contained in the CGT schedule 2017 at labels 8F and 8G, which will accompany your SMSF annual return, on or before the day you're required to lodge your fund's 2017 SMSF annual return,” said the ATO.
“Once you have lodged your fund's 2017 SMSF annual return, the decision to make an election for CGT relief is irrevocable.”
The ATO noted that the CGT relief is not automatic and a fund must meet specific criteria.
“You will need to review your fund's circumstances and determine if CGT relief is available and appropriate for you,” said the regulator.
“It's your responsibility to maintain appropriate records for any assets you elect to apply the transitional CGT relief to. We won't keep these records nor will we request them as part of the annual return.”