POWERED BY MOMENTUM MEDIA
Time to pursue permanent merger rollover relief
The superannuation industry has been told it is time to press the Government for permanent fund merger rollover relief.
In an analysis published this month, KPMG has urged that the superannuation funds be granted equivalent treatment with corporations where mergers are concerned.
Discussing the scheduled expiry of capital gains tax rollover relief for fund mergers after 2 July, this year, KPMG said this was inconsistent with the Government's requirement that funds consider scale and efficiency so as to increase value to members.
The analysis said that there would always be both costs and benefits for superannuation fund trustees to consider in respect to mergers but, given the Government's broader policy settings, "tax and especially the early payment of tax should not be an impediment to mergers".
"It is time for the superannuation industry to press the Government for permanent relief, in the same way that equivalent relief is available in the corporate world," the KPMG analysis said.
It said the policy imperative was clear — "there is no cost to the Government, which continues to receive the tax on the gains when normal sales occur. However, there is a cost to members, if otherwise viable mergers do not proceed or are delayed, due to tax tipping the balance".
Recommended for you
ASIC has issued a warning to financial advisers and superannuation trustees to ensure they are complying with client consent requirements when entering into ongoing fee arrangements.
Australia’s superannuation system is exerting increasing influence over capital markets, with industry feedback to ASIC underscoring its role in reshaping investment flows, governance expectations, and market dynamics.
Australians are some of the most hopeful when it comes to retirement preparedness, with super funds’ handling of retirement savings helping play a part.
The market may be too complacent about the risks of more tariffs, UniSuper’s head of fixed interest warned this week, pointing to Donald Trump’s recent steel-related announcement and a seeming breakdown in negotiations with China.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
91.29 3 y p.a(%)
2
L1 Capital International
69.55 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
36.96 3 y p.a(%)
4
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
35.77 3 y p.a(%)
5
GAM LSA Private Shares AU I
34.22 3 y p.a(%)
