‘It’s irrevocable and important’: ATO issues CGT reminder
SMSF trustees are continuing to stumble with their CGT relief decisions, with a looming deadline and following a rollercoaster rollout period.
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.