CGT rollover relief for merging super funds welcomed

14 May 2020
| By Jassmyn |
image
image
expand image

The Financial Services Council (FSC) has welcomed the newly passed legislation to provide permanent capital gains tax (CGT) rollover relief for superannuation fund mergers has been but is disappointed the new laws would create more unnecessary taxation on managed funds.

The relief reduced the tax liability that could arise for fund members when super funds merge, and removed a significant barrier to mergers.

The relief was set to expire on 1 July without the Treasury Laws Amendment (2020 Measures No. 1) Bill 2020.

FSC chief executive, Sally Loane, said she welcomed the certainty for mergers by was disappointed the new laws also contained changes which would create more unnecessary taxation on Australia’s managed funds

“This relief has been extended several times, and we are pleased to see the Government delivering on its Budget announcement to make this a permanent policy,” she said.

“However, the legislation also contains changes to the definition of Significant Global Entity (SGE) to include managed investments – this will impose an unnecessary tax compliance burden on Australia’s managed funds.

“A recent survey by Morningstar shows Australia ranks equal last for tax and regulation of managed funds and the SGE change will not help improve our ranking.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 4 months ago
Kevin Gorman

Super director remuneration ...

1 year 4 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 4 months ago

Future Group is set to take on nearly $1 billion in funds under management (FUM) and welcome more than 100,000 new members following two significant successor fund transf...

10 hours 39 minutes ago

The International Monetary Fund (IMF) has issued a sobering assessment of the global economic landscape in its latest World Economic Outlook, dramatically revised after D...

13 hours ago

Growth from the listed company’s key businesses has propelled Generational Development Group to new milestones in the three months to 31 March....

13 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND