ATO finalises CGT relief guidance


Thursday 09 March 2017

The Australian Taxation Office (ATO) has finalised its guidance (LCG 2016/8) on the transitional capital gain tax (CGT) relief that is available to superannuation funds that need to comply with either the introduction of the new transfer balance cap or the changes to the tax treatment of transition to retirement (TTR) income streams.

The final Guideline clarifies that the CGT relief is available to the assets supporting a TTR income stream in an unsegregated fund without needing to commute the pension back to the accumulation phase. Where the fund uses the segregated method, the Guideline indicates the CGT relief is intended to apply and the Government is considering legislative amendments to clarify this position.

Further information

ATO, Law Companion Guideline LCG 2016/8 Superannuation reform: transfer balance cap and transition to retirement reforms: transitional CGT relief for superannuation funds

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