C CGT small business retirement exemption
This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
End of attention
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?
Leave C blank. Go to D.
Write at C the total value of personal contributions made by the member in 2014–15 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- the SMSF has not been advised or become aware that the cap election is no longer valid or applicable.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:
- 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.
- 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 2014–15 the lifetime limit for the CGT cap is $1,355,000.
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.
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Last modified: 15 Jan 2016QC 44344