Global

Details

  • Service: Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 6/18/2013

Australia - After-tax investment return challenges for superannuation funds 

June 18: Australian superannuation funds are taxed savings vehicles, and their members' benefits are ultimately measured in after-tax terms. Fund investment decisions that do not consider certain attributes risk less-than-optimal returns for fund members.

Challenges that superannuation funds face if members are to successfully reap optimal benefits from after-tax investing include:


  • Tax risk management policies and processes to address investment tax issues, including consideration of tax risk appetite
  • Tax due diligence activities for new investments and new investment managers, including suitable advice as to the tax efficiency and appropriateness of the investment structure
  • After-tax benchmarks and reporting systems for performance measurement of investment managers
  • Linking the tax benefits from after-tax investment returns appropriately into members' accounts via unit prices or crediting rates

Read a June 2013 report prepared by the KPMG member firm in Australia: After-tax investment returns: challenges for superannuation funds




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