House of Representatives

Supplementary Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello MP)

Chapter 1 - Amendments 1 to 4 to Schedule 2 - CGT roll-over for superannuation entities that merge under new superannuation safety arrangements

Explanation of amendments 1 to 4

1.1 Amendments 1 to 3 amend Schedule 2 to ensure that a CGT roll-over for superannuation entities that merge under new superannuation safety arrangements is provided for the transfer of assets to one or more registrable superannuation entities whose trustees are not licensed at the time of the transfer but where it is reasonable to assume that they will be licensed by 1 July 2006.

1.2 Amendment 4 provides that if the trustees of the registrable superannuation entities do not acquire the required licence by 1 July 2006 the roll-over will be treated as if it had never happened.