The accuracy of the content is not guaranteed. Please rely only on the authorised document. ASFA welcomes the announcement by Senator Rod Kemp, Assistant Treasurer, for transitional relief from Capital Gains Tax for DIY super funds. The government has agreed to remove the retrospective elements and to minimise the impact for those close to retirement. ASFA welcomes the fact that the government has adopted the proposal put forward by ASFA. It is also gratifying that the government has responded to industry and member concerns, according to Philippa Smith, CEO of ASFA – The Voice of Super (The Association of Superannuation Funds of Australia). The New Business Tax System (Miscellaneous) Bill (No 2) 2000, introduced on 13 April, proposed to remove the ability of self managed super funds (SMSFs) to realise assets without attracting capital gains tax (CGT) when converting from the accumulation phase to the pension payment phase. The government’s announcement effectively defers the impact of the change on SMSFs for five years. "ASFA welcomes the government’s amendments to this proposal as it will allow people with DIY superannuation funds who are close to retirement, to move into that phase of their life in a more considered manner and with only a minimal reduction in their expected retirement incomes coming from the change." said Philippa Smith, CEO of ASFA. "Those members of small funds who were considering hurried and pre-emptive steps prior to 1 July this year can now make their retirement decisions in a planned way and consider what is in the best interests for themselves and their families. This would be for the betterment of Australia’s retirement income strategies and good public policy," "Superannuation is a long-term investment and people making provision for their retirement are entitled to a degree of certainty. ASFA believes that the government, in making this change, has recognised the need to maintain consumer confidence in the superannuation system," Ms Smith added. The ASFA proposal suggested that the Bill’s proposed changes be modified to: Exempt from CGT the pre-1 July 2000 capital gain of an asset that was held directly by a SMSF or a small APRA fund (SAF) on 13 April 2000, where the following conditions are met:
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