In the coming months, many SMSF advisers and trustees will need to prepare for lodgment of the 2017 income tax returns for funds.
Although the lodgment date has now been extended to 30 June 2018 for most funds, we expect that the application of the transitional CGT relief provisions introduced as part of the new transfer balance cap measures will be a significant issue given the need to choose the relief in respect of specific assets where appropriate.
The following video outlines the operation of the relief as well as some of the planning issues that we have encountered in practice.
Below is a table setting out the criteria for the relief. Further details can be found in Cowell Clarke's SMSF Income Stream Guide at chapter 11-060.