POWERED BY MOMENTUM MEDIA
ATO warned on CGT relief regime
The Australian Taxation Office (ATO) has been warned that its proposed capital gains tax (CGT) relief regime presents significant practical challenges for large, unsegregated superannuation funds.
What is more, the ATO has been told that the cost of complying with the transitional arrangements may be “disproportionate to achieving the intended purpose”.
The Association of Superannuation Funds of Australia (ASFA) has used a submission to the ATO to warn not only of the practice challenges entailed in the proposed new CGT regime flowing from last year’s Budget but of the costs.
The ASFA submission said that these practical challenges would mean that superannuation funds might not be able to utilise fully the relief as intended and may incur considerable expense and risk in developing and implementing an interim solution that complies with the legislation.
“This potential loss of tax benefit and the significant, additional, cost involved in complying with the legislative method generally will be borne by the members of affected superannuation funds,” the submission said.
It went on to say that whilst the theory behind the transitional CGT relief was logical, the assessment undertaken by many large unsegregated superannuation funds and their custodians since the legislation was finalised (and even earlier when the exposure draft version was released for consultation) was “that there are significant practical challenges that may prevent them from accessing the relief”.
“The single biggest impediment is that at least some of the custodians of superannuation funds (on whom funds rely for their broader CGT reporting) have indicated that significant upgrades may be necessary to their tax reporting and underlying IT systems to accommodate the relief.
Recommended for you
What is CSC and how does its investment strategy stand out?Commonwealth Superannuation Corporation (CSC) is a reti...
What were the key factors that influenced your fund's performance in 2024, and how did market conditions impact your inv...
APRA has announced eight proposals aimed at pushing entities, including super funds, to move beyond treating compliance with certain requirements as a mere box-ticking exercise.
The firm is offering Australians lower fees and improved transparency with its exclusively exchange-traded fund (ETF) portfolios.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.45 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
