Proposed Loss Transfer Regime for Superannuation Funds

In December 2008, Senator Nick Sherry, then Minister for Superannuation and Corporate Law, announced that the Government would introduce a temporary tax measure to assist in the consolidation of superannuation funds.  The apparent goal behind the measure is to allow the industry to merge into fewer, more efficient, larger and presumably more stable funds by removing some of the tax impediments to consolidation.  The announcement proposed an optional loss transfer system for any net capital losses that resulted from the CGT events that would be triggered by the merger of an existing fund into an APRA-regulated fund.  This Tax Brief examines the many refinements to that proposal that occurred during the last eight months culminating, earlier this month, with the release by Treasury of Exposure Draft legislation.  For our full Tax Brief - click here