Advisers reminded on important CGT planning tip
Where clients plan to commence an account based pension in a short time frame, careful planning around the sale of assets can save clients considerable tax, says a technical expert.
In a recent article, SMSF Alliance principal David Busoli said he has received a number of queries from advisers regarding the impending sale of SMSF assets for the clients with significant capital gains.
“Each fund was similar in that they comprised a member in pension mode and another in accumulation who could now, or in a month or so, commence a standard account based pension with their total balance,” said Mr Busoli.
Mr Busoli explained that an SMSF can be a fully segregated pension fund for only part of the year.
“An actuarial certificate is only required for that part of the year in which both a pension account and an accumulation account exist in the fund,” he explained.
“So, provided that all member accounts are in pension mode when the asset is sold, the proceeds of that sale will be tax exempt.
"A little planning can save a lot of tax."
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
