26 Apr 12 Tax relief for super fund mergers
In media release No 2012/020, issued 24 April 2012, the Minister for Employment and Workplace Relations and Minister for Financial Services and Superannuation, Bill Shorten, announced that the Government will change the income tax law to support the implementation of its MySuper reforms by encouraging fund mergers.
Specifically the Government will provide:
- from 1 June 2012 to 1 July 2017, optional loss relief for mergers of complying superannuation funds on the same terms and conditions as the former temporary loss relief with some exceptions including an optional roll-over for capital gains and appropriate integrity provisions relating to losses (see the attachment to the media release); and
- from 1 July 2013 to 1 July 2017, an optional roll-over and loss relief for capital gains and capital losses on mandatory transfers of default members' benefits and relevant assets to a MySuper product in another complying superannuation fund.
Self-managed superannuation funds will be excluded from the relief because the MySuper requirements do not apply to them.
Mr Shorten said that a proposals paper will be released in the next few weeks and the Government expects the legislation to be introduced into Parliament in the second half of the year.