Smarter SMSF

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November 27, 2017  

Episode 26 - CGT Relief: Segregated method and adopting the proportionate approach

November 27, 2017

In this week's podcast (Episode 26), Aaron discusses the ongoing confusion within the SMSF industry about the decisions being made to apply CGT relief under the segregated method, but where the trustee switches the the proportionate method for income tax purposes on 30 June 2017 to avail the fund to apply CGT relief on any or all of the fund's assets (as they are no longer segregated current pension assets). 

Aaron explores the legislative requirements to comply with the object of the relief, but importantly whether a fund needs to obtain an actuarial certificate for the income year where it adopts the proportionate method on 30 June.  This session highlights the importance of how the documentation of applying CGT relief can impact on the approach that needs to be taken within the fund.