Download all chapter outlines in
PDF or RTF format
Previous Outline Back to index Next Outline Download Chapter 37 in
PDF or RTF format

Chapter 37: Implications for superannuation funds and approved deposit funds

Current arrangements

The ability of superannuation funds and ADFs to transfer taxable contributions to life insurers and PSTs creates inequities and considerable complexity.

Profit on the current pension business of superannuation funds and ADFs exempt from tax.

|
A strategy for reform

Apply the 15 per cent rate to the profit on current pension business of superannuation funds and ADFs.

Prevent superannuation funds from transferring taxable contributions to life insurers or PSTs.

|
Key policy issues

Calculation of taxable income

How would the profit on current pension business be determined?

Option
On the same basis applying to life insurers in respect of
their immediate annuity business.