Super gains & losses - CGT

Can't find a clear answer on this one and don't wish to use up one of my limited free calls to a specialist as it is really curiosity, so I'll ask here out of interest ...

s.295-85 ITAA97 acts as a "primary code" for complying super funds "gains and losses".

Therefore, would this overrule, say, s.26BB(2) Gain on disposal or redemption of a traditional security held.

In the context of a SMSF, this would normally be considered on the capital account anyway, and only the statutory provision makes it income.

Cheers,

Rob

Hi Rob,

You may want to speak to your accountant to clarify this.

Cheers,

Dan

PS If your accountant is not a SMSF specialist, speak to one who is.

Its great to trot out the "speak to your accountant line" but unfortunately Rob is an accountant, and a fairly informative one judging by the majority of his posts...

The only person on this forum who i would say would have enough of an idea to know would be NickM but being so busy he rarely gets on here...

Alternatively, could you apply for a private ruling just to see the response?

I'm sure MattR would be able to help, as he's a savvy accountant who frequents here. Maybe send him a PM if he doesn't see this in the next few days?

Found the answer ... thought it was too good to be true.

It is really limited in a similar way to individuals being deemed not to be traders.

Quoting from the act:

Exceptions

295-85(3)

The provisions referred to in subsection (2) can apply to the *CGT event if:


(a) any *capital gain or *capital loss from the event is attributable to currency exchange rate fluctuations; or


(b) the *CGT asset is one of these:


(i) debenture stock, a bond, *debenture, certificate of entitlement, bill of exchange, promissory note or other security;

(ii) a deposit with a bank, building society or other financial institution;

(iii) a loan (secured or not);

(iv) some other contract under which an entity is liable to pay an amount (whether the liability is secured or not).

Cheers,

Rob