SMSF Capital Gains Rules and how they affect your investments
SMSF capital gains rules state that if you make a net capital gain, it will be included in your SMSF’s assessable income. SMSFs have flat tax rate of 15%. Complying SMSFs are entitled to a CGT discount of 1/3 if the relevant asset had been owned for at least a year.
Net capital gain is calculated as per below;
Total Capital Gain for the year
Total Capital Losses for that year and any unapplied losses from earlier years
The CGT discount and any other concessions.
A capital loss made on a sale of investment can only be offset against capital gains. If capital losses are greater than capital gains in a financial year, they must be carried forward to be offset against future capital gains.
SMSF Capital Gains during Pension Phase
Ordinary income and statutory income that a complying SMSF earns from assets held to provide for super income stream benefits, usually called pension, is exempt from income tax. CGT implications depend on whether the segregated or unsegregated method is used to determine exempt current pension income.
If your SMSF is 100% in Pension phase and has segregated pension assets, you should ignore any capital gains or capital losses resulting from the disposal of these assets. Due to this tax rule, many SMSFs have a general policy – subject to investment conditions – of trying to minimise the sale of such assets as real estate and shares – until their funds begin to pay a pension.
If the SMSF uses the unsegregated method, capital gains and losses to need to be accounted for by obtaining Actuarial Certificate.
SMSF Capital Gains Rules and How SuperHelp can help
If you have any questions in relation to your SMSF, please call us for more information on 1300 736 453.
Disclaimer: This information should not be considered personal financial advice as it is intended to provide general advice only. This factsheet has been prepared by Superhelp Australia Pty Ltd without taking into account your personal objectives, financial situations or needs.
The information contained in the factsheet may not be appropriate to your individual needs therefore you should seek personal financial advice before making any financial or investment decisions.
Book Your Free SMSF Consultation
Book your free consultation with me to find out if SMSF is right for you. If you have any other questions, we are happy to help!
Why is SMSF Set up so affordable at SuperHelp?
SuperHelp has been servicing the SMSF market for over 15 years. We pride ourselves on being able to provide an affordable SMSF service without compromising on quality. One of these services is to provide new members with setting up their SMSF at an affordable fee when they use our award winning service.
Do I need to use a specific bank, broker or provider?
Unlike other SMSF administrators and accountants we do not restrict you to what bank, broker or service provider you use. We are independent and do not take any commissions from other parties so that our clients can invest their super where they please.
How long has SuperHelp been around for?
SuperHelp have been around since 2002 - so over 15 years! While new SMSF administrators have come and gone, we are still around!
How much is your ongoing annual administration fees?
Our first year introductory offer for new SMSF or transferred SMSF are $899 + GST regardless of asset types. Subsequent years are dependent on the number of assets and asset types you have - please use our calculator to estimate your fee. You will find that our fees are very reasonable to the quality provided within the SMSF market.
Do you have an SMSF newsletter that I can sign up to?
Yes! We send out a quarterly SMSF newsletter to all of our clients and anyone interested in SMSF. You can sign up here :
Do you offer any other SMSF services?
Yes we do! You can see a full list of SMSF services on our services page.
SuperHelp is located in Macquarie Park, NSW however we work with clients all around Australia.