Did the SMSF receive personal contributions for the member that the member elected to exclude from their non-concessional contributions with a CGT small business retirement exemption?
No |
Leave C blank. Go to D. |
Yes |
Read on. |
Write at C the total value of personal contributions made by the member in 2017–18 that the member elected to exclude from their non-concessional contributions with a CGT small business retirement exemption.
To include an amount at C the SMSF must have received a valid Capital gains tax cap election from the member.
The CGT cap election is valid if:
- the member gave it to the SMSF on or before the date the contribution was made, and
- the SMSF has not been advised or become aware that the cap election is no longer valid or applicable.
The exemption from being a non-concessional contribution is not effective if the member made the CGT cap election after making the contribution.
There are two limits that affect the amount you include at C:
- The CGT small business retirement exemption lifetime limit – A member cannot elect to apply a CGT small business retirement exemption to more than $500,000 during their lifetime.
- The CGT cap – This cap limits the amount of exemptions that a member can claim through a CGT cap election during their lifetime. The amounts at C CGT small business retirement exemption and D CGT small business 15-year exemption both apply to the CGT cap. The CGT cap is indexed annually. In 2017–18 the lifetime limit for the CGT cap is $1,445,000.
Do not include amounts at C:
- if you are aware that a CGT cap election is not valid or that the election is not applicable (include these at B Personal contributions)
- that are in excess of the CGT small business retirement exemption lifetime limit or the CGT cap (include these at B Personal contributions).
If you become aware that a CGT cap election is not valid or applicable after you have lodged the SMSF annual return, you must lodge an amended annual return.
For more information, see: