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,