The Association of Superannuation Funds of Australia (ASFA) has welcomed the now permanent capital gains tax (CGT) relief for super fund mergers.
ASFA chief executive, Dr Martin Fahy, said when the relief was only a temporary measure the trustees did not always have certainty about whether tax relief would be available, when considering whether a potential merging would be in members’ best interests, as typically mergers took time to complete.
“ASFA has, over a long period, highlighted the absence of ongoing tax relief for mergers as a barrier to fund consolidation, and welcomed the Government’s 2019 Budget announcement that it would make the tax relief permanent,” Fahy said.
The association said the passage of the Treasury Laws Amendment (2020 Measures No.1) Bill 2020 would provide vital certainty to the industry and ensure that tax implications do not impede mergers that would otherwise be in the best interests of superannuation fund members.
