subscribe to our newsletter
ATO provides clarity on CGT technical hitch

ATO provides clarity on CGT technical hitch

ATO provides clarity on CGT technical hitch
Miranda Brownlee
16 March 2018

The ATO has confirmed that SMSF trustees, who unintentionally answered ‘no’ to CGT relief in their annual return as a result of default software settings, will be able to make an amendment before the due date of their return.

Earlier this week, DBA Lawyers director Daniel Butler highlighted an issue where SMSF software was automatically invoking a ‘no’ response to electing to apply the CGT relief where trustees hadn’t made an election.

An ATO spokesperson has since clarified that this issue does not relate to any single digital service provider.

It has also clarified that SMSF trustees in this situation will be able to amend their SMSF annual return to include a CGT relief election before the lodgement due date of their return.

The ATO stated that SMSF trustees who do not initially elect to use transitional CGT relief “have up until the due date for lodgement to amend their fund’s 2016-17 SMSF annual return to include an election for transitional CGT relief if they wish to do so”.

“We are aware that there have been some instances where SMSF trustees who have answered ‘no’ to CGT relief in their 2016-17 SMSF annual return have been advised in ATO correspondence that they are not able to subsequently amend their SMSF annual return before the lodgement due date to include a CGT relief election. We wish to correct this information,” it said.

“Any SMSF trustees who have previously received ATO advice that an amendment cannot be made in these circumstances are invited to contact us.”

The ATO also stated that it is taking steps to ensure that ATO systems allow for amendments to include a CGT relief election in relevant cases.

ATO provides clarity on CGT technical hitch
smsfadviser logo
join the discussion

What do you plan to do in response to the new adviser education standards?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

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