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Govt acts on Labor tax and super backlog

Assistant Treasurer Arthur Sinodinos has announced the outcome of the government's consultations over the previous government’s tax and superannuation policy measures.

In a statement issued on Saturday, Senator Sinodinos announced that of the 92 announced but not legislated tax and super measures inherited from the Rudd-Gillard government, 16 will proceed and 48 measures will be discontinued.

“Clarifying the status of these measures is about the government taking the necessary decisions to finally provide certainty on a large number of announced but unenacted taxation measures, the bulk of which were left behind by the ad hoc dysfunctional process of decision-making of the former Labor government,” the assistant treasurer said.

“We have delivered on our commitment to clear the backlog of tax measures and provide significant operational certainty for business and consumers.”

Among the measures relevant to advisers, the government has announced it will consider “the unnecessary barriers to the development of longevity insurance products” as well as a broad review of retirement income products.

The government has also announced it will proceed with measures to provide tax relief to fund managers, which Financial Services Council chief executive John Brogden called a “sensible” move in a statement welcoming the announcement.

In addition, measures to enhance the Australian Taxation Office’s powers to issue penalties to SMSFs that “breach the law”.