Trustees who want to apply for CGT relief need to advise the ATO by completing the election within the CGT schedule, together with the relevant CGT questions in the SMSF annual return.
With the June 30 deadline fast approaching, the ATO and professionals alike are finding understanding of key details and deadlines are still shaky with some.
“It is in fact an irrevocable decision. It’s an important one. It’s a transitional one. So completing that election is particularly important to do it on time because the CGT relief is not automatic,” said Deputy Commissioner at the ATO, James O’Halloran.
Mr O’Halloran also noted the opportunity for amendments to returns that have already been lodged.
“For those who’ve already lodged their annual return but didn’t make the CGT election [or] even those who chose not too consciously, they can lodge an amended 16–17 return in order to include a CGT election, up until the due date of the SMSF annual return,” he said.
CGT relief has been a major trouble spot for the SMSF profession since the super reforms package was rolled out.
Networks like Hayes Knight have reported CGT relief is the catalyst for a “tsunami” of errors, from even the most experienced SMSF professionals.
Late last year, Hayes Knight found errors related to CGT in 70 per cent of all audits received to September. Mainly, some of the key areas where errors are being made are around ineligible funds applying for CGT relief and with the implementation of the cost base reset.
katarina.taurian@momentummedia.com.au
[i]“For those who’ve already lodged their annual return but didn’t make the CGT election [or] even those who chose not too consciously, they can lodge an amended 16–17 return in order to include a CGT election, up until the due date of the SMSF annual return,” he said.[/i]
That’s a thoughtful and common sense approach Mr O”Halloran, unfortunately it doesn’t work like that in your department in real life.
If you lodge an amendment to a SMSF 2017 Annual Return and try to claim CGT Relief where you didn’t before (deliberately, by oversight or software problem), you will get a letter from the ATO saying you have made an election not to apply CGT relief and you can’t change your mind. If you question that you will be told to prepare and lodge an objection….and that is still the ATO response as recently as this morning.
Do we quote your name in the objection Mr O’Halloran… or the ATO website that says you can make such an amendment?
I think you need to send a stern email to your back office…today!… because they are not delivering on your promises, and time is running out!
So what happens if my administrator does not complete my accounts on time. They have had the paperwork for months pre Dec17.
There are CGT issues. Completion has been promised (for months). But I only received a list of queries last week. These have been replied to but when I called to confirm receipt I found out that my accountant is no longer employed. Apparently made redundant & jobs gone offshore.
As a user of BGL360 (and Trustee) I do all my own admin with minimum fuss, and kept up to date ! the cloud based software makes it so easy there is no need for an administrator.
Get a different administrator. Try an accountant, the fees will probably not be higher and they treat you as a personal client, not a set of figures to process offshore.