The SMSF Association has urged self-managed superannuation fund (SMSF) trustees to apply for Capital Gains Tax (CGT) relief as there was still confusion around the implementation of the transitional rules.
The association stressed that the tax return lodgement 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.
SMSF Association chief executive, John Maroney, said the association was concerned trustees might not be area of the “looming deadline, especially if they don’t get specialist advice”.
He noted that trustees of SMSFs that did not make a CGT relief election by the date by lodging their SMSF return on time, they could miss out on CGT relief and potentially thousands of dollars in tax savings.
“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,” he said.
“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.”