04 May 1111 Three month extension of CGT loss relief for fund mergers
In media release No 2011/066, issued 3 May 2011, the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, announced that the Government will extend the temporary loss relief for merging superannuation funds from 30 June 2011 to 30 September 2011.
Superannuation funds that are currently in the process of merging will therefore have additional time to complete their mergers and still qualify for the temporary loss relief for complying superannuation funds mergers.
The existing requirement for the loss relief that mergers must be completed within a single income year, will also necessarily be relaxed to allow affected funds to benefit from the extension.
Mr Shorten said that the Government does not intend to provide any further extensions of this temporary loss relief or to make it permanent. However, the Government announced as part of the Stronger Super reforms that it supports in principle appropriate loss relief for superannuation funds required by the Australian Prudential Regulation Authority to merge in order to meet MySuper licence conditions.