ASFA calls for clearer definitions
The Federal Government has been warned that draft legislation covering new regulations for self-managed superannuation funds (SMSFs) with respect to investing in "collectables" and "personal use assets" risks conflicting with the Superannuation Industry Supervision Act (SIS Act).
In a submission lodged with Treasury earlier this month, ASFA has pointed out that the terms proposed by the draft legislation would breach the sole purpose and the Income Tax Assessment Act (ITAA), which specifically prohibit "current day use of assets by a regulated superannuation fund".
The ASFA submission points to the fact that the legislative draftsmen appear to have drawn on the capital gains tax (CGT) definitions contained in the ITAA but warns that this is not appropriate where superannuation is concerned.
"The CGT definitions are either too broad or are in conflict with key parts of the SIS Act," the submission said.
ASFA said it believed an appropriate definition of "collectable" and "personal use asset" was needed and that such definitions would need to reside within the SIS Act.
AUTHOR
Mike Taylor
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