POWERED BY MOMENTUM MEDIA
Make CGT rollover relief permanent – KPMG
The Government should embrace the Productivity Commission’s (PC’s) recommendation for making the current temporary tax rollover relief for fund mergers and transfer events permanent, according to major consultancy, KPMG.
In an analysis released this week, KPMG Tax Director, Ross Stephens said that given the ongoing regulatory and political exhortation to increase the numbers of mergers in the superannuation sector aimed at removing under-performing funds “anything else would have been a disappointment”.
“… we must hope the PC’s clear recommendation for legislation in this area will be taken on by the government, as it has been curious to see tax policy contradicting the government’s overall stance - as well as being inconsistent with the permanent relief provided for a number of restructures for other types of businesses,” he said.
Stephens said the relief enabled the closing fund in a merger to transfer its unrealised tax positions to the ongoing fund along with the relevant assets.
“Without the relief, these unrealised tax positions are crystallised at the date of merger. With a number of funds having exhausted capital losses and being in an unrealised net capital gains position, this gives rise to a cash cost in the absence of rollover relief, and represents a potential impediment to a successful merger,” he said.
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
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
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
