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
Australia’s superannuation funds are becoming a defining force in shaping the nation’s capital markets, with the corporate watchdog warning that trustees now hold systemic importance on par with banks.
Payday super has passed Parliament, marking a major shift to combat unpaid entitlements and strengthen retirement outcomes for millions of workers.
The central bank has announced the official cash rate decision for its November monetary policy meeting.
Australia’s maturing superannuation system delivers higher balances, fewer duplicate accounts and growing female asset share, but gaps and adequacy challenges remain.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
