In this month’s blog we’ll talk about some of the key deductions and superannuation contributions to make the most of this financial year, as well as what the ATO will be looking out for. Continue reading
We all need something to look forward to and for many members of Generation X the lure of discount airfares and package deals are irresistible; others have luxury holidays high on the agenda.
Ten simple tips for understanding CGT relief!
1. You must be affected by the Transfer Balance Cap (this means rolling back funds into accumulation) or have a TRIS not in retirement phase just before 1 July 2017.
2. CGT relief applies on an asset by asset basis. You do not need to apply it to all of the SMSF’s eligible assets.
3. You must have held the asset on 9 November 2016 and not sold it before 30 June 2017.
4. CGT relief locks in the Capital Gains Tax treatment of unrealised capital gains on pension assets by resetting their cost base to market value.
5. The CGT discount period restarts from the time the asset’s cost base is reset.
6. All assets that were segregated pension assets (includes 100% pension funds) on 9 November 2016 will effectively be tax free at the time they stop being segregated pension assets. (You will need an actuarial certificate for the time after this date if you are adopting the proportionate method.)
7. All assets that were unsegregated pension assets will lock in their capital gains on 30 June 2017. You can defer gains (not losses) until the asset is sold.
8. Unless specific assets are rolled back, CGT relief can potentially be applied to all of the funds’ assets, regardless of the actual amount rolled back.
9. Funds that had unsegregated pension assets and moved into segregated pension assets (100% pension funds) between 9 November 2016 and 30 June 2017 will not get any CGT relief.
10. Your choice is irrevocable and must be made when your 2016-17 SMSF annual return is due by completing the CGT schedule.
Consider the following when making your choice:
• Asset cost bases and market values • Your fund’s ECPI and future ECPI
• When members will enter retirement phase • Future and current capital losses
• Deferral of capital gains • The future market value and sale of assets
Published by: smsfassociation.com
Thank you to everyone who participated in our Cancer Council Charity Golf Day on Friday! We are very appreciative of everyone’s deep pockets. In total we raised $15,300 for the NSW Cancer Council which is an incredible effort! We look forward to seeing you all next year.
Please click here to view photo’s from the day.
FIRST home buyers in NSW will no longer have to pay stamp duty on both new and existing homes worth up to $650,000, with discounts also applying to properties worth up to $800,000. A great outcome for first home buyers.
The NSW Government has announced a comprehensive package of measures to support first homebuyers by providing stamp duty exemptions, boosting housing supply and delivering infrastructure to support growing communities across the State. the measures include:
– Abolish stamp duty on all homes up to $650,000
– Provide a $10,000 grant for builders of new homes up to $750,000 and purchasers of new homes up to $600,000
– Abolishing the stamp duty charged on lenders’ mortgage insurance, which is often required by banks to lend to first homebuyers with limited deposits, providing a saving of around $2,900 on an $800,000 property
– Doubling the foreign investor surcharge from 4% to 8% on stamp duty and 0.75% to 2% on land tax
– Removing stamp duty concessions for investors purchasing off the plan
– Committing $3bn in infrastructure funding from Government, councils and developers to accelerate the delivery of new housing
– Fast-track approvals for well-designed terraces, townhouses, manor homes and dual occupancy by expanding complying development to include these dwelling types
– Measures to maintain the local character of communities
*Total of stamp duty exemptions plus first home owners grant plus savings from LMI duty abolition (Genworth LMI Premium Estimator based on a first home buyer with a $50,000 deposit).**Does not include additional land tax surcharge.