Government’s superannuation tax proposals open for comment
The Government yesterday released draft superannuation tax legislation and a consultation paper for public consultation.
The paper, entitled ‘Superannuation Taxation Integrity Measures,’ covers a measure that would include a member’s share of the outstanding balance of a Limited Recourse Borrowing Arrangement (LRBA) in their total superannuation balance.
It also covers a proposal that would require that non-arm’s length expenditure is taken into account when determining whether the non-arm’s length income taxation rules apply to a transaction.
Both measures were announced in the 2017-18 Budget and are part of the Government’s wider attempts at superannuation taxation reform.
Kelly O’Dwyer, the Minister for Revenue and Financial Services said that these measures are not intended to prevent the use of LRBAs. Rather, they would ensure that LRBAs or related party transactions cannot be used to circumvent contribution caps.
Stakeholders could comment on the consultation paper by lodging a submission online via the Treasury website by 9 February, 2018.
AUTHOR
Hannah Wootton
Recommended for you
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
Iress has appointed Insignia Financial’s former general manager of master trust and insurance products as its newest CEO of superannuation, who will take over from Paul Giles.
