Extending tax relief for merging superannuation funds
The Government will extend the current tax relief for merging superannuation funds, which was due to lapse on 30 June 2017, until 1 July 2020.
The Government first introduced tax relief for merging superannuation funds in December 2008. The relief enables superannuation funds to transfer capital and revenue losses to a new merged fund, and to defer taxation consequences on gains and losses from revenue and capital assets.
The extension of the relief will continue to ensure superannuation fund member balances are not reduced by tax when superannuation funds merge. This will ensure that income tax will not act as an impediment to mergers and will continue to facilitate industry consolidation.
The extension of this relief period should ensure that fund trustees continue to investigate opportunities to merge small and inefficient superannuation funds, thus improving the efficiency of the industry.