The discontinuation of the capital gains taxation (CGT) relief for merging superannuation funds will cost members of the fund carrying losses on average 2.6 per cent of their account balance, according to the Association of Superannuation Funds of Australia (ASFA).
The figure of 2.6 per cent comes from the work ASFA has done with accountancy firm KPMG on merging super funds, ASFA chief executive Pauline Vamos said yesterday.
Vamos called on super funds that are considering a merger to inform Treasury of their estimated CGT costs for members.
"For any fund merging or thinking of merging in the next six to 12 months, please talk to me or send a letter straight down to Treasury explaining how and how much will be shaved off members' accounts if we merge carrying losses," she said.
"At the moment, the average cost of the industry is 2.6 per cent, which is a lot, especially off smaller balances."
ASFA is planning to make a last-ditch effort to convince Treasury of the necessity of the CGT relief extension.
"Treasury still believes that there is a revenue shortfall there in the budget; they put in an amount of $10 million," she said. "We are going down to Canberra again to show them it is not a revenue item," she said.
