3 hours ago
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April 15, 2026 — 5:01am
I am an age pensioner. Apart from my home and super, my only other asset is a parcel of shares in Corporate Travel, which I bought for $30,000 some years ago. The shares were suspended last August and were then worth about $26,000. I have not been able to find any class action to join and, as I have never been in this situation before, I am unsure what to do. Centrelink is still counting them as an asset, which is reducing my pension. I seem to be in a catch-22 situation – I cannot access or sell the shares, yet I am being penalised for holding what is effectively a worthless asset.
Centrelink normally assesses shares using ASX values, which are updated in March and September, although you can request a revaluation at any time. If shares are suspended or even delisted, they are still treated as a financial asset and may still have some value.
Where an investment has effectively failed, it is usually assessed at its last recorded value until a receiver or administrator provides an updated figure. If the ASX valuation no longer reflects the true position, Centrelink will require supporting documentation to justify any lower value.
In your case, the difficulty is that while the shares are suspended, there is no reliable market price, so Centrelink will continue to use the last available valuation until better evidence emerges. My broker tells me the true value may not be known unless the shares are relisted or the company’s position becomes clearer.
Given the relatively modest amount involved, a practical strategy may be to reduce your assessable assets by using the gifting rules – for example, giving away $10,000 before June 30 and a further $10,000 after July 1. This won’t solve the underlying issue, but it should ease the impact on your pension.
I am confused about how capital losses can be used in an SMSF where cost bases are reset before the end of the 2026-27 year for Division 296 tax purposes. Will any carried-forward capital losses be lost once the cost bases are reset, meaning they cannot be used in the 2027-28 year? Also, as of June 30, 2026, do we need to use those capital losses immediately, or can they still be carried forward and used in the 2026-27 year?
Leigh Mansell of Heffron tells me many super funds own investments that have increased in value over time. To ensure that growth up to June 30, 2026, is not caught by the new Division 296 tax, which will apply to super balances above $3 million from 2026-27, special CGT relief is available.
For SMSFs, trustees can choose to reset the cost base of all CGT assets to their market value at June 30, but only for Division 296 purposes. The original cost base for the fund’s tax return does not change. In effect, the fund will keep two sets of cost bases: one for its normal tax reporting, and another adjusted set used solely for calculating earnings for Division 296 tax.
Importantly, there are no changes to how the fund calculates its taxable income. Capital losses carried forward are still available. For example, if an SMSF has $200,000 of carried-forward losses at June 30 and does not use them in 2026-27, they carry forward again.
If, in 2027-28, the fund sells an asset for $1.5 million that originally cost $1 million, the gain is $500,000. The $200,000 of losses can be offset against that gain, leaving $300,000, which is then reduced by the one-third CGT discount to $200,000.
The Division 296 tax calculation is done completely separately. If that same asset was worth $1.4 million at June 30, the adjusted cost base for Division 296 becomes $1.4 million. If it is later sold for $1.5 million, the gain for Division 296 tax purposes is only $100,000. The $200,000 of carried-forward losses can be applied against this, reducing the Division 296 tax gain to zero.
The key point is that while losses can be used in the Division 296 tax calculation, the two systems remain entirely separate. Division 296 tax calculations never feed back into the fund’s tax return, and any gains or losses under Division 296 have no effect on the fund’s current or future tax position. As you can see, this is a very complex situation. Expert advice is essential.
We have subdivided our land and built a house where our daughter and her family now live. The house is in our name. Will this be treated the same as a granny flat arrangement for Centrelink purposes, and therefore be exempt from the income and assets tests?
Unfortunately, no. A separate freestanding house on a subdivided title is treated as a distinct asset. It will be fully assessable under the Centrelink assets test, so there is no relief on that front. In addition, if the property increases in value, there may be capital gains tax when you eventually dispose of it.
I am retired and will be 75 in May. I have made a $120,000 non-concessional contribution this financial year, and my total super balance has remained under $1 million. I am unclear whether I am eligible to make additional (bring-forward) non-concessional contributions before the age 75 deadline of June 28.
As you were aged 74 on 1 July 2025, your total super balance was under $1 million, and your MyGov account confirms that you are not within a bring-forward arrangement triggered previously, you are eligible to trigger the three-year bring-forward rule this financial year.
This means that the maximum non-concessional contributions (NCCs) allowable is $360,000, which enables you to top up your contributions already made by a further $240,000 without exceeding your cap.
Because you turn 75 in May 2026, any additional NCCs must be received by your super fund by 28 June 2026.
Noel Whittaker is author of Retirement Made Simple and other books on personal finance. Questions to: [email protected]
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
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