The Association of Superannuation Funds of Australia (ASFA) has welcomed new legislation which it says will ultimately protect member balances during superannuation fund mergers.
ASFA chief executive Pauline Vamos said the capital gains tax (CGT) relief for super funds would allow super funds to merge without triggering an adverse tax event.
"Without the CGT relief, fund mergers could lead to members of merging funds suffering tax-related losses of up to 2 per cent of their super account," she said. "Or [to] mergers delayed or abandoned altogether."
The legislation would apply retrospectively from 1 October 2011.
The initial CGT rollover relief was first introduced as a result of the global financial crisis, but it ended on 30 September 2011.
"We are very pleased to see that relief will cover the period from 1 October 2011 to 1 July 2017, as this will provide certainty for many funds planning future strategy," Vamos said.
"The collaborative advocacy efforts involving many super funds contributing details of their situations to Treasury, and to the Treasurer's adviser, has clearly illustrated the issue in a compelling way," she added.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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