The Government has released exposure draft legislation and associated draft explanatory material for public consultation. This legislation will amend the Income Tax Assessment Act 1997 to give effect to tax reforms announced on 29 June 2015, which expands the tax relief available to superannuation funds when mandatorily transferring assets as part of the transition to the MySuper rules.
The purpose of the consultation is to seek industry views on the proposed expanded tax relief.
Superannuation funds are required to transfer the existing balances of members who are in default products to MySuper products by 1 July 2017. Tax relief is currently provided for these transfers into a different superannuation fund, but not for transfers within the same fund structures. 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 29 June 2015 and 1 July 2017.
Interested parties are invited to make a submission by 27 April 2017.