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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.

A strategy for reform

Apply the redesigned imputation system to PSTs.

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.

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.