Financial Services Council welcomes super merger tax break
The Financial Services Council (FSC) has welcomed legislation that supports fund mergers through an exemption on capital gains tax (CGT).
FSC chief executive John Brogden said superannuation funds may need to merge to cope with pressures to improve efficiency, lower costs and comply with Stronger Super reforms.
"Achieving the best returns for members across the industry requires allowing smaller and less efficient funds to merge in order to achieve economies of scale - this legislation allows that to occur," he said.
Legislation passed through Parliament last Thursday included measures to develop a central register and tax file number validation service.
The FSC also welcomed moves towards delivering on the SuperStream promise, which it said would consolidate multiple accounts and lower fees, complexity and confusion.
"This Bill creates a central repository of information which will allow people to bring their super accounts together.
"This means lower fees and higher superannuation balances for Australians," Brogden said.
The Government backdated the exemption to apply from 1 October 2011 until 1 July 2017. It allows merging superannuation funds to roll-over unrealised gains and losses on revenue and capital assets, and to transfer realised revenue losses and capital losses.
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