Superannuation Changes for SMSF

There was some contention in the superannuation industry with SMSF's with segregated current pension assets to put in place a trustee resolution before 1 July, 2017, confirming that their fund ceased to be segregated in order to be eligible for the CGT relief.

This is particularly relevant in situations where the client may have been 100 per cent in the pension phase during the course of the year and on the last day of the financial year, they transfer an amount back into accumulation phase so they come under the $1.6 million cap. The ATO has confirmed that funds in this situation will automatically switch to the proportionate method on the effective day of the commutation. In other words, there is no need for trustees to put in place a resolution to this effect.