Press Release

Federal budget changes to Capital Gains Tax (CGT) would end the bias against the four in 10 Australians whose marriages end in divorce, leading self-managed superannuation funds specialist Super Concepts said today.

Treasurer Peter Costello announced last night an extension of the CGT roll-over on marriage breakdowns for self-managed and other small superannuation funds to allow one spouse in a marriage breakdown to transfer their entire benefit in specie to another fund without incurring a CGT liability.

Super Concepts spokesman Justin Sadler said that under the current law only in-specie transfers which are covered by a split made under the Family Law Act are excluded from CGT on transfer.

"The Budget announcement extends the exemption to all assets transferred between small funds because of the marriage breakdown," Mr Sadler said.

"This change is recognition by the Federal Government that the current law is unfair in modern Australia where 40 per cent of marriages end in divorce.

"With such a high divorce rate, it was extremely unfair to see someone being penalised by having to pay CGT to transfer their super, something which only added to the anguish of a marriage breakdown.

"This budget change is extremely welcome and removes this bias."

Mr Sadler said the decision by the Federal Government to double co-contributions for lower-income Australians was also welcomed.

"However, I would still urge the federal government to extend the maximum co-contribution to those earning up to $40,000 from the current level of $28,000," he said.

END.