POWERED BY MOMENTUM MEDIA
Govt flags key super amendments
The Federal Government has moved again to make specific changes to the superannuation tax regime around post-retirement products.
The Assistant Treasurer, Stuart Robert announced the release of exposure draft legislation which he said would amend superannuation legislation to:
- Correct the way that market-linked pensions are valued under the transfer balance when they are commuted or rolled over, resulting in a nil debit.
- Ensure that death benefits that include life insurance proceeds are not subject to tax when they are rolled over to a new superannuation fund.
The minister said the legislation also included amendments that permit the Commissioner of Taxation to account for additional tax debts in running balance accounts.
He said the draft regulations would:
- Fix the valuation of defined benefit pensions under the transfer balance cap to reflect when pensions are permanently reduced following an initial higher payment, such as for some public sector defined benefit reversionary pensions.
- Change the definition of life-expectancy period for innovative income stream products to account properly for the number of days in a leap year.
- Maintain the capped defined benefit treatment of market-linked pensions under the transfer balance cap where they have been rolled over as a result of a successor fund transfer.
- Provide transfer balance cap debit and credit values for innovative income stream products that are paid-off in instalments, ensuring they receive appropriate treatment under the transfer balance cap.
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(%)
