The Australian Government has released draft legislation which expands the tax relief available to superannuation funds when making mandatory transfers of assets as part of the transition to new retirement account rules.
Under reforms first announced on June 29, 2015, superannuation funds are required to transfer the existing balances of members who are in default products to MySuper products by July 1, 2017.
Existing rules provide tax relief for these transfers into a different superannuation fund, but not for transfers within the same fund structures. The proposed legislation published by the Government on April 13, 2017, seeks to ensure that tax relief will be expanded to apply to mandatory transfers within the same fund structure. This tax relief will provide an asset roll-over which will apply to transfers made between June 29, 2015, and July 1, 2017.
The introduction of MySuper retirement accounts formed part of a wider overhaul to the superannuation system started under the Government of former Labor Prime Minister Julia Gillard. The reforms were primarily designed to simplify the superannuation system, while lowering costs to savers and increasing transparency.
The Government is inviting comments on the draft legislation until April 27, 2017.