• Retirement exemption

    Prior to 1 July 2006

    From 1 July 2006

    From 1 July 2007

    From 1 July 2009

    For the purpose of determining whether the exempt amount must be rolled over, the time that the individual needs to be aged 55 is:

    • individuals - just before receiving any capital proceeds from the capital gains tax (CGT) event
    • stakeholders – just before receiving an ETP from the company or trust.

     

    Individuals must roll over the exempt amount if they are under 55 just before making the choice to apply the retirement exemption.

    Stakeholders – no change

    The concept of eligible termination payments (ETPs) has been removed, including the ability to ‘roll over’ an ETP to superannuation. However, the amount must still be contributed to a complying superannuation fund or RSA, if the individual is under 55 just before making the choice (individuals) or receiving the payment of the exempt amount (stakeholders).

    No change

    A payment of an amount exempted under the retirement exemption was required to be an eligible termination payment (ETP).

    A payment of an amount exempted under the retirement exemption will be deemed to be either an ETP or to have been paid in respect of employment.

    The amounts are referred to as a ‘contribution’ to a superannuation fund, or a ‘payment’ to a stakeholder.

    No change

    This concession did not apply to gifting of property.

    This concession also applies to gifts of property. As there is no capital proceeds from the event, the market value substitution rule applies to determine the amount of deemed capital proceeds.

    No change

    No change

    The retirement exemption caters appropriately for capital proceeds received in instalments.

    No change

    The provision to cater for an individual receiving capital proceeds in instalments is reinstated (inadvertently removed by other amendments).

    No change

    The small business CGT retirement exemption is not available for CGT events J5 and J6 (which relate to the failure to meet the replacement asset requirements for small business rollovers) as taxpayers cannot satisfy the basic conditions for accessing the small business CGT concessions.

    The basic conditions for the small business CGT concessions do not need to be satisfied for the retirement exemption if the capital gain arises from CGT event J5 or J6 (which relate to the failure to meet the replacement asset requirements for small business rollovers)

    No change

    No change

      Last modified: 21 Jun 2016QC 21145