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CFL Financial location Level 9, 360 Queen Street Brisbane, QLD 4000
fax CFL Financial 07 3328 8999
phone CFL Financial 07 3328 8988
Email CFL Financial mail@cflfinancial.com.au

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If you’re a busy Professional and you feel like you’re not building your wealth fast enough and you want smarter ways to utilise your cash flow, this guide is perfect for you. Clients who have used our strategies have the peace-of-mind knowing they have a ‘game plan’ for financial abundance.

Avoiding CGT in your SMSF

Posted on Mar 15, 2016 by CFL Financial

It may be beneficial for trustees who buy and sell assets through their self-managed super fund to start a transition to retirement pension to escape the burden of capital gains tax.

Capital gains are profits that an SMSF makes on the sale of an asset. Capital gains tax (CGT) is a tax on the profits that a fund, or an individual, makes on the sale of an asset. According to the ATO, CGT refers to the income tax an SMSF pays on any net capital gain it makes e.g. when the fund sells an asset as part of a CGT event, the fund becomes subject to CGT.

While CGT is payable in Australia’s superannuation environment, different rates apply to different situations.

Before a pension is established within an SMSF, any assets the fund has held for less than 12 months will be taxed at 15 per cent, and assets the fund has held for more than 12 months will receive a 33 per cent discount. Therefore, the CGT rate will be 10 per cent.

Once an SMSF trustee is in pension mode, there will be no CGT payable on any transactions. This also goes for all account-based pensions and all transition to retirement pensions, making it one of the main reasons why putting money into superannuation as the lower tax rate will guarantee better returns.

For the reason outlined above, it may also be in a trustee’s best interest to start a transition to retirement pension as soon as they turn their preservation age, which is currently 56 years old.

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Retirement-in style

Retire in style checklist™

There are a few reasons why Business Owners need a Retire In Style Checklist

If you’re a successful and Motivated business owner, and want to set yourself up for retirement, this guide would be perfect for you. My clients who follow these 3 simple steps live with comfort, security and the peace of mind that financial success brings.

Retirement-prosperity-thumbnail

The Retirement Prosperity Guide™

Make sure you don’t miss out on the Retirement Prosperity Guide

If you’re a busy Professional and you feel like you’re not building your wealth fast enough and you want smarter ways to utilise your cash flow, this guide is perfect for you. Clients who have used our strategies have the peace-of-mind knowing they have a ‘game plan’ for financial abundance.

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Email:
Phone: 07 3328 8988
Fax: 07 3328 8999

Office Location:
Level 9, 360 Queen Street
Brisbane
QLD 4000

Postal Address:
GPO Box 2468,
Brisbane,
QLD, 4001

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