{"id":5552,"date":"2015-04-19T00:00:12","date_gmt":"2015-04-18T14:00:12","guid":{"rendered":"http:\/\/www.dbalawyers.com.au\/?p=5552"},"modified":"2015-03-25T00:23:42","modified_gmt":"2015-03-24T13:23:42","slug":"does-rolling-an-asset-over-to-another-smsf-trigger-a-cgt-event","status":"publish","type":"post","link":"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/does-rolling-an-asset-over-to-another-smsf-trigger-a-cgt-event\/","title":{"rendered":"Does rolling an asset over to another SMSF trigger a CGT event?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.dbalawyers.com.au\/wp-content\/uploads\/2015\/03\/Does-rolling-an-asset-over-to-another-SMSF-trigger-a-CGT-event.jpg\" alt=\"Does rolling an asset over to another SMSF trigger a CGT event\" width=\"300\" height=\"200\" class=\"alignright size-full wp-image-5553\" \/>Imagine I am the only member of SMSF 1 and I roll assets over to SMSF 2, where I am also the only member: does this trigger a CGT event?<\/p>\n<p>Some answer this with a no. The no is derived on the purported basis that since I am the only member of each fund, I therefore am the only beneficiary of each fund, and therefore there is no change in beneficial ownership, and thus no CGT event.<\/p>\n<p>However, that reasoning \u2014 and therefore that answer \u2014 is wrong for numerous reasons.<\/p>\n<p>Firstly, even if I am the only member of an SMSF, I am highly unlikely to be the only beneficiary. The key case on this is <em>Kafataris v Deputy Commissioner of Taxation<\/em> (2008) 172 FCR 242. In a nutshell, <em>Kafataris<\/em> confirms that beneficiaries of an SMSF include not just members but anyone who might one day benefit from the fund.<\/p>\n<p>Secondly, it is not necessarily true that beneficial ownership is vested in anyone. See <em>CPT Custodian Pty Ltd v Commissioner of State Revenue<\/em> (2005) 224 CLR 98.<\/p>\n<p>Finally, and most importantly, that is just not how the CGT laws are written. Section 104 60 of the <em>Income Tax Assessment Act 1997<\/em> (Cth) provides that a \u2018CGT event E2 happens if you transfer a CGT asset to an existing trust\u2019. Naturally, the new SMSF will be an existing trust. There is an exception that this CGT event does not occur if \u2018you are the sole beneficiary of the trust and \u2026 you are absolutely entitled to the asset\u2019, however, <em>Kafataris<\/em> illustrates that this exception essentially will never apply to an SMSF.<\/p>\n<p>So, in short, rolling assets over from one SMSF to another does trigger a CGT event.<\/p>\n<p>(Naturally, the pension exemption might have some impact on the practical effect, but that is a different question.)<\/p>\n<p class=\"aligncenter\">* * *<\/p>\n<p>This article is for general information only and should not be relied upon without first seeking advice from an appropriately qualified professional.<\/p>\n<div class=\"printfriendly pf-button  pf-alignleft\"><a href=\"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/does-rolling-an-asset-over-to-another-smsf-trigger-a-cgt-event\/?pfstyle=wp\" rel=\"nofollow\"  title=\"Printer Friendly, PDF & Email\"><img decoding=\"async\" class=\"pf-button-img\" src=\"https:\/\/cdn.printfriendly.com\/buttons\/printfriendly-pdf-button.png\" alt=\"Print Friendly, PDF & Email\" style=\"width: 112px;height: 24px;\"  \/><\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Imagine I am the only member of SMSF 1 and I roll assets over to SMSF 2, where I am also the only member: does this trigger a CGT event? Some answer this with a no. The no is derived on the purported basis that since I am the only member of each fund, I [<a class=\"read-more\" href=\"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/does-rolling-an-asset-over-to-another-smsf-trigger-a-cgt-event\/\">read more<\/a>]<\/p>\n","protected":false},"author":11,"featured_media":5553,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33,40],"tags":[41],"ppma_author":[136],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Does rolling an asset over to another SMSF trigger a CGT event? | Leading SMSF Law Firm<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/does-rolling-an-asset-over-to-another-smsf-trigger-a-cgt-event\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bryce Figot\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/does-rolling-an-asset-over-to-another-smsf-trigger-a-cgt-event\/\",\"url\":\"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/does-rolling-an-asset-over-to-another-smsf-trigger-a-cgt-event\/\",\"name\":\"Does rolling an asset over to another SMSF trigger a CGT event? | Leading SMSF Law Firm\",\"isPartOf\":{\"@id\":\"https:\/\/www.dbalawyers.com.au\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/does-rolling-an-asset-over-to-another-smsf-trigger-a-cgt-event\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/does-rolling-an-asset-over-to-another-smsf-trigger-a-cgt-event\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.dbalawyers.com.au\/wp-content\/uploads\/2015\/03\/Does-rolling-an-asset-over-to-another-SMSF-trigger-a-CGT-event.jpg\",\"datePublished\":\"2015-04-18T14:00:12+00:00\",\"dateModified\":\"2015-03-24T13:23:42+00:00\",\"author\":{\"@id\":\"https:\/\/www.dbalawyers.com.au\/#\/schema\/person\/21df751f40981297a0f6417071b6a63e\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/does-rolling-an-asset-over-to-another-smsf-trigger-a-cgt-event\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/does-rolling-an-asset-over-to-another-smsf-trigger-a-cgt-event\/#primaryimage\",\"url\":\"https:\/\/www.dbalawyers.com.au\/wp-content\/uploads\/2015\/03\/Does-rolling-an-asset-over-to-another-SMSF-trigger-a-CGT-event.jpg\",\"contentUrl\":\"https:\/\/www.dbalawyers.com.au\/wp-content\/uploads\/2015\/03\/Does-rolling-an-asset-over-to-another-SMSF-trigger-a-CGT-event.jpg\",\"width\":300,\"height\":200,\"caption\":\"Does rolling an asset over to another SMSF trigger a CGT event\"},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.dbalawyers.com.au\/#website\",\"url\":\"https:\/\/www.dbalawyers.com.au\/\",\"name\":\"DBA Lawyers\",\"description\":\"Leading SMSF Law Firm\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.dbalawyers.com.au\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.dbalawyers.com.au\/#\/schema\/person\/21df751f40981297a0f6417071b6a63e\",\"name\":\"Bryce Figot\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.dbalawyers.com.au\/#\/schema\/person\/image\/a9a812be4056bdc150ca270634702d72\",\"url\":\"https:\/\/www.dbalawyers.com.au\/wp-content\/uploads\/2024\/03\/bryce.jpg\",\"contentUrl\":\"https:\/\/www.dbalawyers.com.au\/wp-content\/uploads\/2024\/03\/bryce.jpg\",\"caption\":\"Bryce Figot\"},\"description\":\"Bryce is also recognised as one of Australia's leading SMSF lawyers. He has worked predominantly in the fields of tax and superannuation over the past 17 years and holds a Master of Laws from the University of Melbourne. Bryce is a regular seminar presenter on tax and SMSF topics and has published extensively in these areas. Bryce regularly presents for the major professional bodies including the SMSF Association, CPA Australia The Tax Institute, Chartered Accountants Australia and New Zealand and DBA Network. Bryce is regularly quoted and published in the Australian Financial Review, the Herald Sun, CCH and LexisNexis publications, and elsewhere in the financial press. Bryce wrote the book Complete Guide to SMSFs: Planning for Loss of Capacity and Death, published by CCH Wolters Kluwer. Bryce is on the editorial panel of LexisNexis' Australian Superannuation Law Bulletin. He is a Senior Fellow at the University of Melbourne's Law School, where he is the subject coordinator of Taxation of Superannuation. Bryce is a Specialist SMSF Advisor\u2122 as well as being a Chartered Tax Adviser.\",\"url\":\"https:\/\/www.dbalawyers.com.au\/author\/bryce\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Does rolling an asset over to another SMSF trigger a CGT event? | Leading SMSF Law Firm","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/does-rolling-an-asset-over-to-another-smsf-trigger-a-cgt-event\/","twitter_misc":{"Written by":"Bryce Figot","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/does-rolling-an-asset-over-to-another-smsf-trigger-a-cgt-event\/","url":"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/does-rolling-an-asset-over-to-another-smsf-trigger-a-cgt-event\/","name":"Does rolling an asset over to another SMSF trigger a CGT event? | Leading SMSF Law Firm","isPartOf":{"@id":"https:\/\/www.dbalawyers.com.au\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/does-rolling-an-asset-over-to-another-smsf-trigger-a-cgt-event\/#primaryimage"},"image":{"@id":"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/does-rolling-an-asset-over-to-another-smsf-trigger-a-cgt-event\/#primaryimage"},"thumbnailUrl":"https:\/\/www.dbalawyers.com.au\/wp-content\/uploads\/2015\/03\/Does-rolling-an-asset-over-to-another-SMSF-trigger-a-CGT-event.jpg","datePublished":"2015-04-18T14:00:12+00:00","dateModified":"2015-03-24T13:23:42+00:00","author":{"@id":"https:\/\/www.dbalawyers.com.au\/#\/schema\/person\/21df751f40981297a0f6417071b6a63e"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.dbalawyers.com.au\/smsf-compliance\/does-rolling-an-asset-over-to-another-smsf-trigger-a-cgt-event\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/does-rolling-an-asset-over-to-another-smsf-trigger-a-cgt-event\/#primaryimage","url":"https:\/\/www.dbalawyers.com.au\/wp-content\/uploads\/2015\/03\/Does-rolling-an-asset-over-to-another-SMSF-trigger-a-CGT-event.jpg","contentUrl":"https:\/\/www.dbalawyers.com.au\/wp-content\/uploads\/2015\/03\/Does-rolling-an-asset-over-to-another-SMSF-trigger-a-CGT-event.jpg","width":300,"height":200,"caption":"Does rolling an asset over to another SMSF trigger a CGT event"},{"@type":"WebSite","@id":"https:\/\/www.dbalawyers.com.au\/#website","url":"https:\/\/www.dbalawyers.com.au\/","name":"DBA Lawyers","description":"Leading SMSF Law Firm","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.dbalawyers.com.au\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.dbalawyers.com.au\/#\/schema\/person\/21df751f40981297a0f6417071b6a63e","name":"Bryce Figot","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.dbalawyers.com.au\/#\/schema\/person\/image\/a9a812be4056bdc150ca270634702d72","url":"https:\/\/www.dbalawyers.com.au\/wp-content\/uploads\/2024\/03\/bryce.jpg","contentUrl":"https:\/\/www.dbalawyers.com.au\/wp-content\/uploads\/2024\/03\/bryce.jpg","caption":"Bryce Figot"},"description":"Bryce is also recognised as one of Australia's leading SMSF lawyers. He has worked predominantly in the fields of tax and superannuation over the past 17 years and holds a Master of Laws from the University of Melbourne. Bryce is a regular seminar presenter on tax and SMSF topics and has published extensively in these areas. Bryce regularly presents for the major professional bodies including the SMSF Association, CPA Australia The Tax Institute, Chartered Accountants Australia and New Zealand and DBA Network. Bryce is regularly quoted and published in the Australian Financial Review, the Herald Sun, CCH and LexisNexis publications, and elsewhere in the financial press. Bryce wrote the book Complete Guide to SMSFs: Planning for Loss of Capacity and Death, published by CCH Wolters Kluwer. Bryce is on the editorial panel of LexisNexis' Australian Superannuation Law Bulletin. He is a Senior Fellow at the University of Melbourne's Law School, where he is the subject coordinator of Taxation of Superannuation. Bryce is a Specialist SMSF Advisor\u2122 as well as being a Chartered Tax Adviser.","url":"https:\/\/www.dbalawyers.com.au\/author\/bryce\/"}]}},"authors":[{"term_id":136,"user_id":11,"is_guest":0,"slug":"bryce","display_name":"Bryce Figot","avatar_url":"https:\/\/www.dbalawyers.com.au\/wp-content\/uploads\/2024\/03\/bryce.jpg","first_name":"Bryce","last_name":"Figot","user_url":"","description":"Bryce is also recognised as one of Australia's leading SMSF lawyers. He has worked predominantly in the fields of tax and superannuation over the past 17 years and holds a Master of Laws from the University of Melbourne.\r\nBryce is a regular seminar presenter on tax and SMSF topics and has published extensively in these areas. Bryce regularly presents for the major professional bodies including the SMSF Association, CPA Australia The Tax Institute, Chartered Accountants Australia and New Zealand and DBA Network.\r\nBryce is regularly quoted and published in the Australian Financial Review, the Herald Sun, CCH and LexisNexis publications, and elsewhere in the financial press. Bryce wrote the book Complete Guide to SMSFs: Planning for Loss of Capacity and Death, published by CCH Wolters Kluwer. Bryce is on the editorial panel of LexisNexis' Australian Superannuation Law Bulletin. He is a Senior Fellow at the University of Melbourne's Law School, where he is the subject coordinator of Taxation of Superannuation.\r\nBryce is a Specialist SMSF Advisor\u2122 as well as being a Chartered Tax Adviser."}],"_links":{"self":[{"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/posts\/5552"}],"collection":[{"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/comments?post=5552"}],"version-history":[{"count":0,"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/posts\/5552\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/media\/5553"}],"wp:attachment":[{"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/media?parent=5552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/categories?post=5552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/tags?post=5552"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/ppma_author?post=5552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}