Capital gains tax cap election – instructions and form
This form is for superannuation funds and their members to make a capital gains tax (CGT) cap election (NAT 71161).
You should complete this election if you make a personal super contribution using the capital proceeds of the sale of certain small business assets and you choose to have them excluded from your non-concessional contributions cap.
You are only eligible to do so when one of the following capital gains tax (CGT) concessions applies to you:
- the small business 15 year exemption – which provides a total exemption for a capital gain on a CGT asset if you have continuously owned the asset for at least 15 years
- the small business retirement exemption – which provides an exemption for capital gains up to a lifetime limit of $500,000 (reduced by any previous CGT exempt amounts you have had disregarded under the retirement exemption).
There are also basic conditions you must satisfy before either of the small business CGT concessions can apply, such as the $6 million net asset threshold and the active asset test.
These basic conditions and the other eligibility rules for the small business CGT concessions are complex.
You must check you are eligible before making this election and signing the declaration in section E. You may need to seek professional advice.
Last modified: 18 Mar 2016QC 19584