- SMSF Association Media Release
The clock is ticking for self-managed super fund (SMSF) trustees who want to apply for Capital Gains Tax (CGT) relief under transitional provisions that began on 1 July 2017, says SMSF Association CEO John Maroney.
“Some SMSF trustees have a false belief that CGT relief can be applied for at any stage during this financial year; this is simply not the case. Trustees of a complying SMSF must make an election for CGT relief to apply in the approved form contained within the CGT schedule of their 2016-17 SMSF income tax return.
“The irrevocable election for CGT relief must be made on or before the day a trustee is required to lodge the fund’s 2016-17 income tax return, and for some trustees that is just weeks away, on 31 October 2017.”
Maroney says that with all changes to superannuation, the Association is concerned that SMSF trustees might not be aware of this looming deadline, especially if they don’t get specialist advice.
“The fact is the tax return lodgment date for the 2016-17 financial year for SMSFs where one or more prior-year tax returns are outstanding at 30 June 2017 is 31 October 2017.
“If trustees of such SMSFs don’t make a CGT relief election by this date by lodging their SMSF return on time, they could miss out on CGT relief and potentially thousands of dollars in tax savings.”
He says feedback to the Association indicates there is still confusion around the implementation of the CGT relief transitional rules, and trustees who believe they are eligible for the CGT relief would be “well advised” to seek specialist advice.