SMSF Association Media Release
The SMSF Association has welcomed today’s announcement by the Federal Government to scrap its proposal to tax unrealised superannuation capital gains.
In a statement released today, the Government also announced it would index the $3 million threshold – another initiative strongly pushed by the Association.
SMSF Association CEO Peter Burgess says this announcement will send “waves of relief” through the SMSF community, especially as the proposal to tax unrealised capital gains and not index the $3 million threshold were the two most contentious issues in the legislation.
“From the outset, the Association has worked tirelessly to highlight the expansive and damaging consequences of taxing paper profits.
“Working in partnership with other organisations, we have clearly demonstrated the deleterious effect this would have on a diverse range of industries such as farming and small business and investment activities such as venture capital, so it’s extremely pleasing that the Government has listened to these concerns.”
Burgess says given the original design of this tax it has always been the Association’s strong contention that there was no easy way to address the taxation of unrealised capital gains.
“In these circumstances, the only solution was to scrap the original design and start again and we are genuinely thankful that the Government has now decided to do this.
“We now look forward to working with Treasury and the superannuation industry on alternatives that accomplishes an equitable outcome for all super fund members.”