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Transitional CGT choices to be made by SMSFs
Published on 01 Feb 17 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
The new $1.6m transfer balance cap superannuation measures became law late last year. This article highlights the CGT issues that need to be considered by trustees of SMSFs and their advisers affected by the new transfer balance cap measures, which require complying superannuation funds to reduce the assets supporting income streams payable to members in the retirement phase to no more than $1.6m at 30 June 2017.
A number of concessional CGT choices are in place to provide relief, allowing members with a pension balance in excess of $1.6m to transfer to the new tax regime. Significantly, relief does not apply automatically but requires a written choice in the approved form and consideration will need to be given to the specific choices to be made, the assets to be subject to any cost base reset or CGT deferral, and the ongoing management of the fund to achieve the desired outcomes.
Author profiles
Peter Slegers CTA
Peter heads Cowell Clarke's tax and revenue practice group. He advises and acts for a wide range of public and private companies as well as for the trustees of self managed superannuation funds. Peter’s areas of expertise include: income tax (as it impacts on business and high net worth clients); capital gains tax; goods and services tax; state taxes and superannuation law. Peter is regularly involved in advising SMSF trustees on issues associated with superannuation income streams. Peter is a member of the Australian Institute of Company Directors and the SMSF Professionals Association of Australia Ltd in addition to being a member of the Tax Institute’s South Australian State Council.
- Current at
08 October 2019
