This page shows how you can apply capital gains tax (CGT) relief to the investments in Class. The transitional CGT relief is available for any funds taking measures to reduce the balance supporting the retirement phase income streams in excess of the $1.6m transfer balance cap or TRIS reform commencing on 1 July 2017. For more background information refer to Capital gains tax (CGT) relief.
- The fund is active
- Fund policy is correctly updated
- All transactions including corporate actions and tax statements are processed up to the CGT relief date
- There are no unmatched disposal parcels, cost base adjustments or quantity adjustments prior to the CGT relief date
- The CGT relief application event should only be used for a fund that has active pension members during the period and is eligible for CGT relief
Navigate to Fund Level > Members > CGT relief application
The current legislation allows clients to choose either to pay tax on the notional gain as part of the 2017 SMSF Annual Return or to defer it when the fund uses the proportionate method to take up the CGT relief, as such the CGT relief application event now supports the non-deferral option to allow users to recognise the capital gains in 2016/17 FY without deferring it to the future year.
If you intend to defer some notional gains and recognising some for a fund that is using the proportionate method to apply CGT relief, you will need to process them via two separate events.
The CGT relief applies differently depending on whether the fund uses the segregated or proportionate method for 2016/17 FY to work out the exempt current pension income (ECPI). For more information on the eligibility for applying CGT relief using the different methods, refer to the knowledge article on Capital gains tax (CGT) relief.
Please refer to below pages for applying the CGT relief using the different methods
- CGT relief using the proportionate method (Deferral option)
- CGT relief using the proportionate method (Non-deferral option)
- CGT relief using the segregated method
Once the CGT Relief Application event is submitted, the following information becomes available:
- Event Details
- Audit Details
- Related Events
- Journal Entry
- Event Postings