A Bill to provide tax relief for the mandatory roll-over to a MySuper product within a superannuation fund has been introduced to Parliament, almost two years after the measure was announced.
This change, among others, is contained in the Treasury Laws Amendment (2017 Measures No. 4) Bill 2017.
“As a transfer of a default member’s account balance may create an income tax liability from the realisation of fund assets, asset roll-over relief is currently available for such a transfer to a MySuper product in another superannuation fund to ensure that the default members are not disadvantaged,” says the Explanatory Memorandum (EM) to the Bill.
“Schedule 2 to the Bill will extend the asset roll-over relief to mandatory transfers to a MySuper product within a superannuation fund. This will ensure that default members of superannuation funds will not incur adverse and unintended consequences when their account balances are transferred to a MySuper product within the fund.”
“The amendments apply to transfers within a superannuation fund to a MySuper product made between 29 June 2015 and 1 July 2017,” says the EM. The amendments were announced on 29 June 2015 and the transition to MySuper products must be completed by 1 July 2017.
However it will be at least several more weeks before the Bill can pass. The Bill was included in the list of Legislation Proposed for Introduction in the 2017 Winter Sittings – which was published on 3 May 2017. The Bill was introduced to the House of Representatives on the last day of the Winter sittings, a second reading was moved and then debate adjourned to a later day. The next Parliamentary sitting day is the 8th of August.
According to the EM “the amendments will have an unquantifiable financial impact” and have “nil” compliance cost impact.