Focus on capital gains tax relief ups ahead of 1 July
Customers are wanting to know about pre and post-tax superannuation contributions, work test rules, and capital gains tax (CGT) relief in the context of retail super and self-managed super funds (SMSFs), according to BT Advice.
BT Advice technical consultant, Tim Howard, said the March quarter had seen a lot of interest around CGT ahead of the 1 July changes to super.
Howard said the CGT relief measures were one-off tax concessions available to select super fund members, and would be adversely affected by complying with the $1.6 million transfer balance cap, or changes to tax treatment in transition to retirement (TTR) pensions.
“Advisers are looking to get the best possible outcome ahead of 30 June and are proactively engaging with product providers and administrators to make this happen” Howard said.
“For SMSF clients in particular, we’re seeing a trend to collaboration between advisers, accountants and administrators to ensure no one misses the opportunity to apply CGT relief.”
Howard said non-concessional contributions had attracted the most attention given the maximum amount that could be contributed by a couple was $1.08 million after tax.
“This is the last opportunity for clients to make both higher concessional and non-concessional contributions under the current arrangements before 1 July,” he said.
“Non-concessional contributions space is definitely where we’re seeing the most interest and activity.”
AUTHOR
Hope William-Smith
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