POWERED BY MOMENTUM MEDIA
ASFA points to MySuper CGT issues
The Association of Superannuation Funds of Australia (ASFA) has renewed its call for the Government to provide Capital Gains Tax roll-over relief - this time in the context of the implementation of MySuper.
In its submission to the Parliamentary Joint Committee reviewing the Stronger Super legislation, ASFA has argued that the absence of CGT roll-over relief and the fact that many funds are carrying deferred tax assets may necessitate many trustees to expend considerable time and resources creating a MySuper offering which would otherwise not have needed to be created.
"We note that CGT relief may be granted where APRA forces a fund to merge after the MySuper legislation is in place," the submission said. "In our view this is inadequate, as for this to happen the fund would have to establish its MySuper offering first, which would be a waste of resources."
ASFA said it strongly urged that if permanent CGT relief was not provided, then as a minimum, it should be provided from now until 1 July 2014.
It said there was a clear precedent for this, as similar relief was provided during the last Australian Prudential Regulation Authority (APRA) licensing transition period.
"It was also a clear recommendation from the Cooper Panel that such relief be provided in recognition of the extent of the transformation of the industry that Stronger Super will drive," the ASFA submission said.
"The absence of CGT roll-over relief creates a significant barrier to fund mergers," it said.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
