The Government plans to introduce legislation to Parliament to provide CGT relief where superannuation balances are transferred within a fund into a MySuper product.
The Treasury Laws Amendment (2017 Measures No. 4) Bill is planned to be introduced in the winter sitting of Parliament, which starts today. The Bill will “provide a Capital Gains Tax rollover where a superannuation fund transfers the balances of members from default superannuation funds to MySuper compliant funds, and the assets which support those balances,” according to the Legislation proposed for introduction in the 2017 Winter sittings document. It will also “address existing integrity issues that will be exacerbated by the superannuation reform measures”.
These measures were originally announced in June 2015, by the, then, Assistant Treasurer Josh Frydenberg.
“Super funds are required to transfer the existing balances of super fund members who are in default products to a MySuper product by 1 July 2017. MySuper products provide a simple, cost effective default superannuation product,” he said.
“Tax relief is currently provided for these transfers into a different super fund, but not for transfers within the same fund structure. As a result, default members of some super funds may incur adverse and unintended consequences when their account balances are transferred.”
“From today, super funds that transfer their default members’ balances to a MySuper product within their fund structure will also be able to access this tax relief.”
The only other superannuation legislation listed for introduction in the winter sitting is the Public Sector (Superannuation) Laws Amendment Bill, which makes “miscellaneous reforms to the superannuation arrangements for Commonwealth employees, judges and parliamentarians”.
Not listed for re-introduction is the superannuation legislation – including to expand super choice and make changes to super fund governance – which lapsed ahead of the double dissolution election. These measures are still, seemingly, Government policy.