The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP, has welcomed the commencement today of the amendments to provide loss relief for superannuation funds that merge.
This measure was included in Tax Laws Amendment (2009 Measures No. 6) Bill 2010 which was passed by the Australian Parliament on 11 March 2010 and received Royal Assent on 24 March 2010.
The loss relief measure removes significant income tax impediments to mergers between complying superannuation funds. These amendments will permit eligible entities to roll-over capital losses and revenue losses under the merger, and to transfer previously realised capital losses and revenue losses.
"This is a temporary measure in the light of uncertain conditions in the global economy and the global financial market turmoil that existed around the time the measure was announced, with limited application from 24 December 2008 until 30 June 2011," Mr Bowen said.
"The Government has noted the concerns of industry regarding the operation of the provisions in respect of directly held assets raised in the Senate inquiry."
The amendments permit merging superannuation funds to access loss relief for losses in respect of directly held assets where the fund also holds assets that are a complying superannuation first home saver account, life insurance policy or units in a pooled superannuation trust.
"I wish to thank industry stakeholders and the Senate Committee for their valuable contribution to the development of the loss relief amendments," Mr Bowen said.
"This measure is one part of the Government’s efforts to improve efficiency in superannuation. Another measure in train, the Super System Review, has the goal of ensuring that the superannuation system operates in the most cost effective manner and in the best interests of all its members."
The review is considering how to maximise retirement income for Australians, including through increasing efficiencies, reducing costs and fees and lifting long-term rates of return.
25 March 2010