Government strengthens super funds infrastructure investment opportunities
10 May 2011: “The reform package in tonight’s’ Federal Budget to strengthen Infrastructure Australia, particularly the tax changes, will provide greater opportunities for superannuation entities to invest in key infrastructure projects,” said Deloitte Superannuation Tax partner Noelle Kelleher.
The announcement made by the Government recognises that superannuation funds are long term investors into infrastructure projects and require certainty when investing in these projects. Removing the continuity of ownership test and the same business test for losses of designated infrastructure projects, together with the incentive measures to be introduced, will contribute to making infrastructure investments much more attractive to superannuation entities, Kelleher said.
“The proposals mean that superannuation entities looking to diversify their investment portfolios will be able to seriously consider the list of projects outlined by the Treasurer with greater certainty now that the economic outcomes will not be adversely affected by tax legislation.
“This has to be a good outcome for both superannuation entities and the nation,” said Kelleher.