Overall, the issues paper is heading in the right direction. The current tax rules are not well understood and create inequities.
The inclusion rate proposal acknowledges that not all of a foreign superannuation lump sum receipt should be taxable and proposes a method to address that. Over-taxation concerns remain however.
We expect the focus will be on those tax effects, amongst other design issues.
If you have any questions on the above, please speak to your usual KPMG advisor or contact Murray Sarelius.