Government Announcements
Optional CGT loss roll-over for merging super funds
29.04.2009
On 29 April 2009, the Minister for Superannuation and Corporate Law announced that the optional CGT roll-over for capital losses for mergers of complying superannuation funds with APRA-regulated superannuation funds with at least five members is to be expanded following consultation with industry.
The details of the expansion are as follows:
- the scope of the measure will be expanded to apply to mergers involving pooled superannuation trusts (PSTs) where the continuing entity has at least five members and to mergers involving the complying superannuation business of life insurance companies;
- to reduce compliance costs, the measure will now permit superannuation entities in a net capital loss position to roll over assets with both capital gains and capital losses realised on transfer under the merger, rather than just capital losses. Entities can still transfer losses on an asset-by-asset basis as originally announced; and
- the roll‑over will be expanded to permit previously realised net capital losses held in the transferring superannuation entity to be transferred to the continuing superannuation entity and the roll‑over or transfer of any revenue losses to the continuing entity. This further reduces impediments to mergers by ensuring that the taxation value of previously realised capital losses and revenue losses is not lost when the transferring superannuation entity is wound up.
Also, the period of application of the roll-over is to be extended by one year to 30 June 2011.
Treasury is to release draft legislation for consultation shortly.
For the text of the Minister’s media release, click here.
