The accuracy of the content is not guaranteed. Please rely only on the authorised document. Measures to help minimise the impact of the recent tax changes to self managed super funds are being suggested by ASFA – The Voice of Super today. The New Business Tax System (Miscellaneous) Bill (No 2) 2000, introduced on 13 April , removes the ability of self managed super funds (SMSFs) to realise assets without attracting capital gains tax (CGT) when converting from an accumulation fund to a pension fund. "ASFA appreciates the anger felt by many people approaching retirement who have planned carefully, and can now only see a reduction in their retirement incomes coming from the change. Some feel the rug has been pulled out from under them," said Philippa Smith, CEO of ASFA. "Superannuation is a long-term investment and people making provision for their retirement are entitled to a degree of certainty. Changes such as this do nothing to increase consumer confidence in the superannuation system," Ms Smith added. "At the same time, ASFA acknowledges the necessity to have a level playing field that taxes all superannuation funds in the same manner." "In ASFA's view, this could best be achieved by looking globally and by adopting a taxation regime that only taxes super savings at the benefits end, when they are withdrawn from the system on retirement. This is the situation in most European countries," said Ms Smith. ASFA believes the crux of the problem is that the proposed change contains a significant degree of retrospectivity. In order to minimise the impact of this for people who are close to retirement, and restore a level of confidence and certainty in the superannuation system ASFA suggests that the changes proposed in the Bill be modified to:
"Once again, this highlights the need for a coherent, long term strategy to encourage and support retirement income savings."
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