ASFA sees merit in post-tax reporting
Superannuation fund members would be better informed if investment managers and custodians provided information on post-tax returns, according to a background paper developed by the Association of Superannuation Funds of Australia.
The background paper, released this week, looks at the effect of tax on superannuation fund investment returns and concludes that the development of an industry standard for post-tax reporting would help encourage the introduction of reporting on this basis.
It said that investment managers and custodians should be encouraged to provide post-tax returns for both individual and pooled portfolios for each financial year and for longer terms of consecutive financial years.
The background paper suggested that post-tax returns be quoted on two bases — one excluding the unrealised capital gains tax liability and the other including the capital gains tax liability.
It said that quotation of the post-tax returns on two bases should increase the transparency of the calculations and assist in understanding the composition of post-tax returns.
“Disclosure of the post-tax returns of investment managers should encourage managers to focus on strategies to enhance their post-tax returns within their stated investment style and process,” it said.
AUTHOR
Mike Taylor
Recommended for you
The Reserve Bank of Australia (RBA) has lowered rates to a level not seen since mid-2023.
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
