POWERED BY MOMENTUM MEDIA
CGT rollover relief for merging super funds welcomed
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.”
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(%)
