Date posted: 2/04/2019 2 min read

Chartered Accountants ANZ welcomes adoption of advocated super policy

Tax policy on super funds mergers to provide greater certainty.

In brief

  • CGT of APRA super fund mergers to be made permanent
  • Start date will be after June 2020
  • Policy allows long-term planning when assessing to fully or partially merge with another super fund

Chartered Accountants ANZ is pleased the government has formally adopted a superannuation policy we have advocated for several years.

The evidence before the Hayne Royal Commission made plain that APRA regulated funds sometimes struggled to find a way to merge with other super funds.

The Productivity Commission's review into the efficiency and competitiveness of the super industry strongly also suggested that taxes, and uncertain tax policy, were often a significant impediment to funds partially or fully merging with other super funds.

Consolidation of super funds often leads to administration and investment management cost reductions which lowers fees for members and greater efficiency.

It is therefore welcome that the government have announced in the 2019 Federal Budget that the CGT exemption on merging super funds will be made permanent from 1 July 2020.

CGT rollover relief for merging super funds has been available for about 10 years but for small windows of time with no certainty it would continue after each cessation date.

We are pleased this concession is now open ended.

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