Update- Self Managed Super Funds (SMSF) In an effort to remove any potential barriers to superannuation funds seeking to merge and provide more cost effective services to members the Federal Government passed the Tax Laws Amendment (2009 Measures No. 6) Act 2010 which amended the Income Tax Assessment Act 1997 to allow a complying super fund to transfer losses to another fund under an arrangement to merge the funds. Although these rules were designed to facilitate the mergers between large superannuation funds they can also apply to a SMSF that transfers to a public offer fund. A trustee of an SMSF will be eligible to transfer any existing realised capital and tax losses to another superannuation fund under an arrangement to transfer the fund where: - the SMSF is a complying superannuation fund and just before the arrangement the SMSF held assets other than just a life insurance policy or units in a pooled superannuation trust (PST)
- under the arrangement the SMSF will cease to have any members and those members will become members of the other complying superannuation fund
- the other superannuation fund is a complying superannuation fund with five or more members (ie a SMSF can only transfer to a large public offer fund and cannot transfer to another SMSF)
For more details please contact us immediately because the trustee only has until 30th June 2011 to liquidate the fund assets, arrange for a final set of accounts to be completed and then transfer the member benenfits. At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me via ‘Contact Us’ at www.newealth.com.au or to call me on +61 2 9267 2322.
23rd-May-2011 | 
