TR 2005/15 (tax consequences of financial contracts for differences) is still being cited in relation to SMSFs. It rules that gains or losses from CFDs are assessable income unless they result from gambling/recreation. It relies on sections 6-5, 8-1, 15-15 & 25-40 of the ITAA 1997 to make that determination.
The ruling predates the Tax Laws Amendment (Simplified Superannuation) Act of 2007 which introduced section 295-85 (CGT to be primary code for calculating gains or losses) into the ITAA. That section largely removes the applicability of sections 6-5, 8-1, 15-15 & 25-40 from assets held by complying superannuation entities.
ID 2009/110 helpfully clarifies that another form of share derivative, exchange-traded options, are not exempt from section 295-85. Unfortunately there does not seem to be an equivalent ID or ruling for CFDs, or at least not one that I’ve been able to find.
So which is the correct method of reporting CFD gains/losses in an SMSF: assessable income or CGT?
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