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D CGT small business 15-year exemption amount

Last updated 29 March 2021

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 15-year exemption amount?

No

Leave D blank. Go to E.

Yes

Read on.

Write at D 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 15-year exemption amount.

You can include a member's personal contribution at D if it either:

  • qualifies for the small business 15-year exemption, or
  • would qualify for the small business 15-year exemption but for the fact that  
    • the asset was a pre-CGT asset, or
    • there was no capital gain, or
    • the 15-year holding period was not met because of the permanent incapacity of the person (or of a significant individual of a company or trust).
     

To write an amount at D 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  • the SMSF has not been advised or become aware that the CGT cap election is no longer valid or applicable.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.

The amount that you include at D may be limited by 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 D:

  • 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 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:

QC55254