POWERED BY MOMENTUM MEDIA
Treasury changes upset KiwiSaver transfers
The Federal Treasury has been warned that changes to regulations covering the release of excess non-concessional contributions could have the effect of damaging the spirit of the agreement with New Zealand allowing KiwiSaver transfers.
The warning has been issued by the Association of Superannuation Funds of Australia (ASFA) in response to regulations supporting the fairer taxation of non-concessional contributions reforms.
The response specifically points to Item 9 in the draft regulations which it says will have both an adverse and unnecessary impact on superannuation transfers and will remove the capacity of a temporary resident of Australia who has moved permanently to New Zealand from transferring their Australian superannuation account to a KiwiSaver Scheme.
The ASFA response said the organisation believed that the regulatory change would achieve little but would have the effect of increasing fund administration costs and make the KiwiSaver transfer system even more inefficient.
"Additionally, the change does not appear to be within the spirit of the agreement with New Zealand as it may prevent some New Zealand resident KiwiSaver account holders from transferring their Australian source superannuation savings to their KiwiSaver account," it said.
"In summary, neither the benefit of the proposed change nor the mischief being addressed has been explained," the response said. "Also consideration does not appear to have been given to the impact of this increase in red tape on Australian superannuation funds or to KiwiSaver funds and members seeking the transfer of their Australian retirement benefits to a KiwiSaver account."
Recommended for you
HESTA is celebrating its achievements in promoting gender parity across the ASX 300.
AustralianSuper is back in the headlines as a result of its sizeable exposure to Nvidia, with its CEO insisting DeepSeek hasn’t dented US exceptionalism.
Among the most significant issues within its regulatory remit, ASIC has highlighted unsuitable superannuation advice resulting in adverse consumer outcomes.
The superannuation industry has welcomed the government’s intent to develop service standards for all APRA-regulated superannuation funds in the areas of death benefit claims, insurance claims, and member communications.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Ausbil Active Dividend Income Dis AUD
127.58 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
