The accuracy of the content is not guaranteed. Please rely only on the authorised document. Last night the Government proposed fifty nine amendments to the new taxation arrangements that will apply to life insurance companies and superannuation funds. ARISA thanks the Government for proposing some of the amendments, as these will improve the practical operation of the tax changes. However the major amendment involves providing a concession for small super funds only. The Government intends to limit the CGT payable on assets that small super funds had purchased before 1st July 2000 and is used to commence a pension before 1st July 2005. Mr Tony Negline, Chairman of ARISA, said, "ARISA is disappointed that the Government decided that this amendment should apply only to small super funds. "The new tax arrangements affect all pensions and annuities not just small super funds. "ARISA represents all different types of pension and annuity providers. It has always argued that all regulatory rules need to be applied consistently across all similar product types. "Different rules for different product types does nothing else than distort the market place and create unnecessary confusion and complexity. "Based on recent APRA data, the average account balance in small super funds is about $150,000. The average account balance in many public offer arrangements is much lower (about $12,500). While the average account balance is lower in public offer funds, it’s likely that many more people are affected. "With this proposed amendment, the Government has decided to protect some retirees who choose a particular way of providing their retirement income needs. Many other retirees who are in other product types are affected by these changes, especially those who are in discretionary master funds, which is one of the fastest growing segments of the retirement income market. "ARISA urges the Government to re-consider its decision in relation to small super funds. Australia has a vibrant competitive retirement income market. The Government needs to ensure it does nothing to limit this."
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