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Consequences of choosing the exemption

9 September 2007

If you choose this exemption, you disregard the amount of the capital gain you have chosen as the CGT exempt amount.

The amount of any capital gain that exceeds the CGT exempt amount does not qualify for this exemption.

Superannuation reasonable benefit limit consequences

Exempt amounts that are taken to be ETPs (for small business individuals) or paid as ETPs (for companies and trusts) are not subject to tax in the hands of the individual unless they exceed the recipient's reasonable benefit limit (RBL).

RBLs are the maximum amount of superannuation benefits a person can receive during their lifetime on a concessionally taxed basis. Any amounts received in excess of their RBL are taxed at the top marginal rate.

There are two types of RBL - a lump sum RBL and a pension RBL. For the year ended 30 June 2004, the lump sum RBL is $588,056 and the pension RBL is $1,176,106.