Superannuation fund tax relief open for consultation
The Treasury has invited consultation on its proposal to provide merging Australian Prudential Regulation Authority-regulated superannuation funds with the option to roll over tax losses to the receiving entity.
The extension of the loss relief - which originally existed between 24 December 2008 and 30 September 2011 - was announced by the Government on 24 April 2012.
Minister for Financial Services and Superannuation Bill Shorten acknowledged that the Stronger Super reforms would necessitate consolidation within the superannuation industry that could "trigger adverse tax consequences that would hit members' savings".
While a merger may be in the long-term interests of members, "the immediate reduction in members' account balances may preclude this from happening", according to the consultation paper.
Under the upcoming MySuper regime, superannuation funds not wishing to provide a MySuper product will be obliged to transfer members' account balances to a fund that does.
The consultation paper confirms that the mandatory transfer of individual account balances will be subject to optional rollover for capital gains and losses.
The optional loss relief for complying superannuation funds will apply from 1 June 2012 to 1 July 2017, and will have the same terms as the loss relief that existed from 24 December 2008 to 30 September 2011.
The mandatory transfer of default members' benefits and relevant assets into a complying MySuper product will be subject to optional rollover and loss relief from 1 July 2013 to 1 July 2017.
As expected, self-managed superannuation funds will be excluded from the rollover relief.
The proposals paper is available on the Treasury website and submissions are open until 8 June 2012.
AUTHOR
Staff Writer
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.
