Treasury has opened the proposals for a new round of capital gains relief (CGT) for super funds to consultation.
Funds have until 8 June 2012 to make a submission on the proposed relief.
"The proposed relief will ensure that tax considerations are not an impediment to superannuation funds seeking to merge and consolidate in response to the Stronger Super reforms," Minister for Financial Services and Superannuation, Bill Shorten said.
The proposals not only allow for funds that are merging to roll-over capital and revenue losses, but will also give CGT relief to funds that don't want to offer a MySuper product and, therefore, will have to transfer assets to another fund that does comply.
"If such compulsory transfers create a CGT liability, these members could be worse off," Treasury said in a consultation paper published last Friday.
"Optional roll-over for capital gains and capital losses will be provided for transfers of assets which must be made from a fund that chooses not to offer a MySuper product to another fund that does offer a MySuper product."
The proposed optional loss relief will apply from 1 June 2012 to 1 July 2017.
"This period broadly coincides with the period for superannuation funds to undertake the preparation required to transition to the Stronger Super reforms," Treasury said.
Treasury made it clear that self-managed super funds will not be part of the arrangements.
The consultation paper stated that the conditions for the proposed taxation relief included "the complete exclusion of self-managed superannuation funds from the relief".
