Overview
The Capital Gains Relief Analysis - Proportionate report provides a list of all investments with parcels open as at 30/06/2017 (or today's date), with an acquisition date before 09/11/2016. This report has been specially designed to assist you to identify which investments will likely obtain the temporary relief from certain capital gains that might arise as a result of:
- Individuals complying with the transfer balance cap of $1.6M
- Transition to Retirement Income Stream (TRIS) reform commencing from 1 July 2017
It should be used for funds using the unsegregated (or proportional) method in determining its exempt current pension income, as under proportional method the cost base of CGT assets reset to market value is triggered through a deemed disposal and repurchase on 30 June 2017 only.
Report Parameters
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Field Name |
Field Description |
Field Validations |
Example |
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Output Format |
PDF or Rich Text Format available |
Mandatory radio button |
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Output Destination |
You can select whether to download, view or publish to fund documents |
Mandatory radio button |
Download |
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Last Period Update End Date |
Shows when the last period update was run |
Pre-filled text |
30/06/2017 |
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Date |
You can select the date between the pre-commencement period of 9/11/2016 to 30/06/2017 to run this report. |
Date field dd/mm/yyyy |
30/06/2017 |
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Report Header |
Turns on the report header logo To learn more about setting up logos on reports, please see White Labels |
Mandatory radio button |
No |
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Draft Watermark |
Option to put a draft watermark on each page. |
Mandatory radio button |
No |
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Page Footer / Number |
Option to either display both a page footer with date and time stamp, page numbers only or leave blank |
Mandatory drop-down |
No |
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Group By |
Option to either display by Market Type, Asset Pool , General Ledger and Holding Reference |
Mandatory drop-down |
Market Type |
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Include Asset Codes |
Option to add assets codes to the report |
Mandatory radio button |
Yes |
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Exclude Losses |
Option to exclude the losses from the report |
Mandatory radio button |
No |
FAQs
Q: Why this report provides better information than unrealised gains report for 30 June 2017?
A: This report has been specifically designed to identify CGT assets with transition capital gain relief opportunities, therefore it will exclude investments that have not qualified such as:
- Bank Accounts / Foreign Bank Accounts
- Traditional Securities
- Investments sold during the 2016-17 FY
- Investments purchased on or after 9 Nov 2016
Q: What is the Transitional CGT Relief?
A: The transitional Capital Gain (CGT) relief has been introduced to provide relief to individuals who will have to reduce the assets currently supporting retirement pension income streams in order to:
- comply with the $1.6m transfer balance cap; or
- the Transition to Retirement Income Stream reforms which commenced 1 July 2017.
The mechanics used to obtain the CGT relief is to reset the cost base of a CGT asset to its market value through a deemed sale followed by an immediate repurchase of the asset. The gains or losses will be entirely disregarded for funds using the segregated method or partly disregarded if using the proportionate method and may be deferred until the CGT assets are sold'
Q: Why does this report only show the valuation price as at 30 June 2017 or most recent valued price for unlisted investment?
A: For funds using the proportionate method, the cession time has to be 30 June 2017, therefore there is no opportunity to pick a different price other than the market value on 30 June 2017. Obviously, if there is no valuation on 30 June 2017, it will use the most recent one for unlisted investment. Therefore, it may be advantageous to obtain a more recent valuation for unlisted investment such as a property. Please check ATO's valuation Guideline for SMSFs for more information.
Q: What about parcels of investments in a capital loss position?
A: For unrealised losses, there appears to be no advantage in making an election to reset the cost base of the asset and crystallise the capital losses in 2016/17 FY.
Q: Where can I find more information about this?
A: Class has created a webpage on Super Reforms: https://www.class.com.au/super-reforms-2016.
A good starting point will be:
- Law Companion Guide 2016/8: Superannuation reform: transfer balance cap and transition-to-retirement reforms: transitional CGT relief for superannuation funds
- ATO Guide: Transitional CGT Relief
- SMSF Association CGT Relief Go-To Guide (Members Only).