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Valuation issues flagged with super reforms

Super funds with non-listed assets including private trusts and unit trusts will face significant challenges with obtaining valuations for 30 June, particularly if the legislation is delayed, warns SuperConcepts.

Valuation issues flagged with super reforms
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SuperConcepts executive manager, SMSF technical and private wealth Graeme Colley said having the legislation for the super reforms passed by December will make it significantly easier for super funds and super administrators to meet the 30 June deadline.

“As you can imagine these are big systems we’ve got, the transfer of assets from retirement phase back into accumulation phase, if that’s required, that can be tricky because you’re looking at the resetting of the cost base for capital gains tax purposes on the 30th of June,” explained Mr Colley.

“It’s pretty easy to work out the value of listed securities like shares and bonds and things like that, but once you start to look at private trusts, unit trusts, which many super funds have got, the 30th of June is going to be a real challenge this financial year for those people.”

Some super funds may also be part of syndicates or other private arrangements which will also make things difficult if they are approaching the $1.6 million transfer balance cap.

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