The government on Thursday made the capital gains tax rollover relief for amalgamating super funds permanent with the Treasury Laws Amendment (2020 Measures No. 1) Bill 2020.
The relief, which was set to expire on 1 July, reduces the tax liability that could arise for fund members when superannuation funds consolidate, removing a significant barrier to mergers.
Financial Services Council chief executive Sally Loane welcomed the legislative certainty for super mergers, but said the new laws contained changes creating further taxation for Australian managed funds.
“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,” Ms Loane said.
“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.”
But she added with many merger and consolidation programs underway across the super sector, it is vital that funds have certainty that existing policy settings will continue.
“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,” Ms Loane said.
Sarah Simpkins
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
