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Chapter 36: Pooled superannuation trusts

A case for reform

The current taxation treatment is inconsistent with competing entities because investors are exempt on investment returns and PSTs are taxed at a lower rate than other entities.

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A strategy for reform

Apply the redesigned imputation system to PSTs.

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Key policy issues

Rate of tax

What rate of tax should apply?

Who should be able to invest in PSTs?

Option 1
The company tax rate.

Option 2
The 15 per cent superannuation fund rate.

Option
Depends on the rate of tax that applies to PSTs:
- if PSTs are taxed at the company tax rate — any entity; or
- if PSTs are taxed at the 15 per cent rate — complying superannuation funds, complying ADFs and other PSTs.