CGT rollover relief queried on SMSFs
The Federal Treasury has been queried on why self-managed superannuation funds (SMSFs) merging with those regulated by the Australian Prudential Regulation Authority (APRA) will not be granted Capital Gains Tax (CGT) rollover relief.
In a submission to the Treasury on taxation relief around the implementation of the Government's Stronger Super regime, the Association of Superannuation Funds of Australia (ASFA) said it questioned the lack of relief for an SMSF merging with an APRA-regulated fund.
Further, it said it wanted confirmation that CGT rollover relief would extend to small APRA funds.
"While recognising that SMSFs are not subject to the MySuper measures, ASFA is concerned that the absence of tax relief may unnecessarily lock SMSF members into arrangements which have become inefficient or where the trustee is no longer able to properly perform their duties," the submission said.
"In particular, it would not appear to be in everyone's interests that an SMSF presently sitting on realised and unrealised capital losses (which is a very common situation) is impeded from winding up and transferring to a larger fund whilst their trustee awaits better market conditions so as to first recoup these losses solely due to the absence of rollover relief," the ASFA submission said.
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.