POWERED BY MOMENTUM MEDIA
Tax relief on table for super funds shifted under MySuper
The Federal Government has announced it will provide income tax relief for default super fund members who are mandatorily transferred to another fund under MySuper reforms.
Under the reforms, default members’ account balances may be transferred in the event that a fund does not offer a MySuper product – and this may create an income tax liability from the realisation of fund assets or crystalise losses within the member’s fund.
Under the proposed legislation these two liabilities would be also transferred with the account balance to a new MySuper product in the event of a mandatory transfer, with the relief also being extended to life insurance companies and pooled superannuation trusts.
According to the exposure draft of the legislation and explanatory material which the Federal Government released yesterday, the purpose of the changes to the Income Tax Assessment Act 1997 is to prevent “the value of the losses remaining with the transferring fund and protects the value of the accrued default amount of affected members”.
While MySuper will come into effect on 1 July 2013, superannuation funds will have up to four years to make any necessary transfers, in line with the deadline for the transfer of default member’s accrued funds to a MySuper product.
The Federal Government is seeking submissions on the legislation by May 3.
AUTHOR
Jason Spits
Jason has been writing on financial services since 1999 and has worked for on a number of trade media titles in both a full time and freelance capacity. He joined Money Management and Super Review in 2013 in the role of Senior Journalist.
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(%)
