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  • C CGT small business retirement exemption

    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 2016–17 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    • the SMSF has not been advised or become aware that the cap election is no longer valid or applicable.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 2016–17 the lifetime limit for the CGT cap is $1,415,000.

    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:

    Last modified: 19 Feb 2018QC 51269