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Rolling over your CGT

A capital gain or capital loss is the difference between the cost of an asset and the profit or loss made when it is disposed of.  In certain circumstances, a capital gain from a CGT event can be deferred, or ‘rolled over’, until another CGT event happens which involves an asset in the following events:

Marriage or relationship breakdown
If an asset, or a share of an asset, is transferred from one spouse to another upon their marriage or relationship breaking down, any CGT is usually deferred until another CGT event takes place i.e. one spouse sells the asset to someone else.

Loss, destruction or compulsory acquisition
Individuals can defer a capital gain when their CGT asset is lost, destroyed or compulsorily acquired.

Mining lease
Those who dispose of their land to an entity who holds a compulsory mining lease over it that would significantly affect the use of the land can defer a capital gain.

Scrip for scrip
Individuals can defer a capital gain if they dispose of their shares in a company or interest in a trust as a result of a takeover.

Demergers
Individuals can defer a capital gain or capital loss if a CGT event happens to their shares in a company or their interest in a trust as a result of a demerger.

Posted on 26 October '15 by , under Tax.

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There are four different categories of super funds. These have different primary features and are more applicable to certain people than they are to others.

Retail super funds

Anyone can join retail funds. They are mostly run by banks and investment companies:

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  • Financial advisors may recommend this type of fund as they receive commissions or might get paid fees for them.
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  • The companies that own these funds will aim to keep some of the profit they yield

Industry super funds

Anyone can join bigger industry funds, but smaller ones may only be open to people in certain industries i.e. health.

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Public sector super funds

Only available for government employees

  • Employers contribute more than the 9.5% minimum
  • Modest range of investment choices
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Corporate super funds

Arranged by employers for employees. Large companies may operate corporate funds under the board of trustees. Some corporate funds are operated by retail or industry funds, but availability is restricted to employees

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  • Older funds have defined benefits, but most are accumulation funds
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Self-managed super funds

Private super fund you manage yourself. Many more nuances to this type of fund. Most prominent feature is the autonomy over investment.

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