CGT confusion seeing unnecessary sell-offs
A lot of SMSF trustees are confused by the CGT transitional relief provided in the super reforms and are selling off fund assets ...
... under the misconception they will have to pay full capital gains tax from 1 July, says the SMSF Association.
SMSF Association head of technical Peter Hogan says he is still receiving feedback from SMSF trustees and those in the industry, who wrongly believe they must sell assets down or move assets out of the superannuation system if they’re in excess of the $1.6 million cap.
Mr Hogan said there have also been instances of SMSF trustees trying to sell property assets in their SMSF.
“This wasn’t so much because they thought they had to take it out of the super fund, but the trustees were under the misconception they were going to be paying full capital gains tax from 1 July going forward if they hadn’t sold the asset before 30 June,” he told SMSF Adviser.
“There is a lack of understanding around the one capital gains tax concessions which needs to be more widely understood I think.”
Measures related to the $1.6 million cap is causing confusion with retail investors particularly, with accounting giants like PwC seeing trustees mistakenly transferring money in and out of super as a result.
MIRANDA BROWNLEE
Monday, 9th January 2017
smsfadviser.com
Latest Newsletters
Hot Issues
- SMSF assets reach record levels amid share market rally
- Many Australians have a fear of running out
- How to get into the retirement comfort zone
- NALE bill passed by parliament
- Compliance focus impacts wind-ups
- LRBA interest rates increase for 2025
- Income-free areas set to increase from 1 July
- Most Spoken Languages in the World
- Middle-to-higher incomes boosting SMSF growth
- Investment and economic outlook, May 2024
- Transitioning into retirement: What you should know
- Plan now to take advantage of stage 3 tax cuts
- Deeming freeze a win for Age Pensioners
- Downsizer contributions can be time critical
- The superannuation changes from 1 July
- The Deadliest pandemics in History
- Winners & Losers
- Budget breakdown – Federal Government Analysis
- Federal Budget 2024
- Getting to a higher level of financial literacy in Australia
- What is the future of advice and how far off is superannuation 2.0?
- Investment and economic outlook, April 2024
- Australia’s debt service ratio ‘extraordinary’: CBA
- Connecting an adviser with your children
- ACCC scam report
- The Shortest-reigning Monarchs in History
- ATO warns trustees about increasing crypto scams
- Aged care report goes to the heart of Australia’s tax debate
- Removed super no longer protected from creditors: court
- ATO investigating 16.5k SMSFs over valuation compliance
- The 2025 Financial Year Tax & Super Changes You Need to Know!
- Investment and economic outlook, March 2024
Article archive
- April - June 2024
- January - March 2024
- October - December 2023
- July - September 2023
- April - June 2023
- January - March 2023
- October - December 2022
- July - September 2022
- April - June 2022
- January - March 2022
- October - December 2021
- July - September 2021
- April - June 2021
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015
January - March 2017 archive
- Calls for calm over pending CGT amendments
- Almost the world's best for retirees
- ATO reports on top contravention areas for SMSFs
- What recent retirees can teach pre-retirees
- Deloitte points to ‘red flag’ SMSF patterns
- Save early, save often
- Government pushes forward with multinational tax measures
- Jump-start your retirement savings
- Government urged to rectify ‘legislative shortcoming’ with CGT relief
- Some financial terms explained
- Areas of key focus for SMSFs in 2017.
- Powerful Superannuation modelling tools available on our site.
- Your New Year reading: beyond John Grisham
- What a long-term view of the market can teach investors
- CGT confusion seeing unnecessary sell-offs
- ‘Devastating’ property investments hitting SMSFs
- Asset valuation crackdown imminent for SMSFs
- New Year (investment) resolutions
- Trump stimulus to boost global markets
- Female advice customers on the rise
- Retirement costs outpace rise in CPI
- ATO set to scrutinise CGT relief claims