CGT scenarios uninfluenced by extension

The ATO’s extension for SMSF annual returns will not have a huge impact on trustees with highly complex capital gains tax (CGT) relief issues, according to a technical expert.

Earlier this month, the regulator announced the new lodgement date for 2016/17 annual returns will be 30 June 2018, with returns able to be made on the next business day without penalty, due to 30 June falling on a Saturday.

Despite the additional time given to SMSFs, trustees should be dealing with such tax issues now and advisers should employ the right strategy as it will take some time to resolve.

“It’s helpful although I’ve got some pretty complicated cases I’m working on at the moment,” SuperConcepts SMSF technical and private wealth executive manager Graeme Colley told selfmanagedsuper.

“It’s mainly around segregated funds, so they want to stay segregated for the whole year and it gets really complicated because you end up with a number of commutations with the pensions and if you can structure it right, you won’t pay any income tax like they have in the past.”

Colley revealed in one instance a fund had 507 parcels of shares.

“It’s a lot to deal with,” he said.

“And I’m also expecting a lot of clients calling in the next month, so we’re going to be busy right up to June anyway.”

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