Government expands capital gains tax rollover for merging super funds
The Government has announced that it will expand and extend the optional capital gains tax rollover for capital losses from mergers between superannuation funds.
Nick Sherry, the Minister for Superannuation and Corporate Law, said the additional changes to the optional capital gains tax rollover would remove further impediments to mergers between super funds.
The Government announced the capital gains tax rollover in December last year to provide support for super fund mergers. The period of application will be extended to June 2011.
The rollover will be expanded to apply to mergers involving pooled super trusts where the continuing fund has at least five members and to mergers involving the complying super business of life insurance companies.
It will also allow super funds that are in a position of net capital loss to rollover their assets, with both their capital gains and capital losses realised on transfer under the merger.
The measure will also allow previously realised net capital losses and revenue losses held in the super fund to be transferred to the newly-created super fund. The measure will ensure that the tax value of already-realised capital and revenue losses is not lost when the super fund is wound up.
AUTHOR
Benjamin Levy
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