Government’s superannuation tax proposals open for comment
The Government yesterday released draft superannuation tax legislation and a consultation paper for public consultation.
The paper, entitled ‘Superannuation Taxation Integrity Measures,’ covers a measure that would include a member’s share of the outstanding balance of a Limited Recourse Borrowing Arrangement (LRBA) in their total superannuation balance.
It also covers a proposal that would require that non-arm’s length expenditure is taken into account when determining whether the non-arm’s length income taxation rules apply to a transaction.
Both measures were announced in the 2017-18 Budget and are part of the Government’s wider attempts at superannuation taxation reform.
Kelly O’Dwyer, the Minister for Revenue and Financial Services said that these measures are not intended to prevent the use of LRBAs. Rather, they would ensure that LRBAs or related party transactions cannot be used to circumvent contribution caps.
Stakeholders could comment on the consultation paper by lodging a submission online via the Treasury website by 9 February, 2018.
AUTHOR
Hannah Wootton
Recommended for you
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
