Lawyer pushes for cap exemptions for business owners
The government has failed to give consideration to business owners who delayed using their CGT cap pre-budget and made non-concessional contributions instead.
DBA Lawyers director Daniel Butler said from mid-2007 to May 2016 many taxpayers had to make a choice on whether to claim the CGT cap or the non-concessional contribution cap.
“The non-concessional cap used to get refreshed every 3 years, so many taxpayers who wanted to preserve their CGT cap pre-budget chose to use their NCC cap instead,” said Mr Butler.
“They did not wish to burn their CGT cap.”
Mr Butler said the retroactivity with the lifetime limit will therefore “punish these taxpayers who have now burnt their NCC cap”.
“Another concession will be required to ensure these taxpayers are not worse off,” he said.
“This is a complex area of law which will be difficult to provide a legislative fix for and one that the government has not given any consideration of so far.”