CGT relief decision tree – Member considerations
Fund member
has pensions?
NO
No further
action required
YES
Is pension a
TTR Pension?
YES
Qualifies for
CGT relief
NO
Is total
pension value
> $1.6m
NO
No further
action required
YES
Qualifies for
CGT relief
Refer “CGT relief
decision tree – Fund
considerations”
Refer “CGT relief
decision tree – Fund
considerations”
CGT relief decision tree – Fund considerations
No further action
required – not eligible
for CGT relief
NO
Pension commutation
required to comply
with TBC or fund has
TTR Pension?
YES
Is the fund
segregated?
YES
Refer “CGT relief
decision tree –
Segregated fund”
NO – Unsegregated
fund rules apply
• All assets eligible for CGT relief
• Select assets for cost base re-set
• Reset date is 30 June 2017 for market value &
acquisition date for CG discount on actual sale
• Calculate notional gain for selected assets (apply CG
discount if applicable)
• Trustee resolution to apply CGT relief
• Complete CGT relief election on ATO approved form
• Obtain actuarial certificate for 2016/17 ECPI claim
Defer notional
2016/17 CG?
NO
• Apply 2016/17 ECPI%
• Include net gain in
2016/17 return
YES
• Complete election
on ATO approved
form
• Retain record of
deferred amount to
include in return
when asset is sold
CGT relief decision tree – Segregated fund
Pension commutation
required to comply
with TBC or fund has
TTR Pension?
NO
No further action
required – not eligible
for CGT relief
YES
Has the asset been
transferred from the
segregated current
pension?
NO
Asset not eligible
for CGT relief
YES
Has the asset been
segregated since
9/11/2016?
NO
Asset not eligible
for CGT relief
YES
Will the SMSF continue
to use the segregated
method in 2016/17?
YES
NO
• Only assets transferred from segregated
current pension asset pool to segregated
non-current asset pool to comply with
TBC or TTR integrity measures eligible for
CGT relief
• Fund can apply CGT relief to all fund asset
(Beware application of Part IVA by ATO if
fund could have transferred assets
between pools and continued to use
segregated method)
• Select date of transfer between pools
from 9 November 2016 to 30 June 2017.
This will be date for market value to be
reset as cost base and purchase date for
CG discount for actual sale of asset
• Select assets for CGT relief
• Apply CGT relief to selected eligible assets
• Complete CGT relief election on ATO
approved form
• Any notional gain or loss on CGT cost
base reset is disregarded
• Select date of change to unsegregated
method (9 November 2016 to 30 June
2017). This will be date for market value to
be reset as cost base and purchase date
for CG discount for actual sale of asset
• Apply CGT relief to selected assets
• Complete CGT relief election on ATO
approved form
• Any notional gain or loss on CGT cost
base reset is disregarded