The Government has moved to tidy up the rules and tax implications around MySuper transfers.
The Assistant Treasurer, Josh Frydenberg, announced yesterday the Government would be amending the income tax law to ensure the existing MySuper tax relief covers the consequences of transfers within a super fund, where the transfer is required under the law.
The minister's announcement pointed out that 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, and that tax relief is currently provided for these transfers into a different super fund, but not for transfers within the same fund structure.
It said that, as a result, default members of some super funds might 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," Frydenberg said.
The minister's announcement outlined the scope of the relief as follows:
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