Chartered Accountants Australia and New Zealand (CA ANZ) is pleased that the Government has formally adopted superannuation policies that we have advocated for several years in the 2019-20 Australian Federal Budget announcement today.
CA ANZ Superannuation Leader Tony Negline CA welcomes the announcement that the capital gains tax (CGT) exemption on merging super funds will be made permanent from 1 July 2020.
“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,” Negline said.
“The Productivity Commission's review into the efficiency and competitiveness of the super industry strongly 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 reduction in administration and investment management costs and greater efficiencies.”
CGT rollover relief for merging super funds has been available for approximately ten years however over small windows of time, resulting in uncertainty around if it would continue after each cessation date. CA ANZ is pleased this concession is now open ended.
The Government has also accepted CA ANZ’s recommendation to allow self-managed super funds can obtain an actuarial certificate for the whole income year.
“From 1 July 2020, the Government will allow self-managed super funds with accumulation and pension phase monies to obtain an actuarial certificate for the whole income year,” Negline said.
“The current situation is for actuarial certificate to be obtained for only the period of time in which the fund was fully in the pension phase.”
“These are welcome reforms that CA ANZ has advocated for over several years.”
2019 Federal Budget
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