Government releases paper on tax relief for superfund mergers
The Minister for Financial Services and Superannuation, Bill Shorten, today released a proposals paper titled Taxation relief to support the implementation of Stronger Super which provides further details of the proposed taxation relief.
The Government announced on 24 April 2012 that it would provide tax relief to enable superfunds to merge without triggering adverse tax consequences that would hit members' savings.
"These changes will ensure that, as funds transition to Stronger Super, income tax consequences do not block superfund mergers that would otherwise be in the best interests of fund members," Mr Shorten said.
The paper outlines the following taxation relief:
- from 1 June 2012 to 1 July 2017, optional loss relief for mergers of complying superannuation funds on the same terms and conditions as the former temporary loss relief with some exceptions including an optional roll-over for capital gains and appropriate integrity provisions; and
- from 1 July 2013 to 1 July 2017, an optional roll-over and loss relief for capital gains and capital losses on mandatory transfers of default members' benefits and relevant assets to a MySuper product in another complying superannuation fund.
The proposals paper can be accessed from the Treasury website.
The closing date for submissions is 8 June 2012.
18 May 2012