Sydney March 2018 — Qantas Super and GBST have signed an agreement that will significantly extend GBST’s successful tax capability. This enhanced offering will give Qantas Super members the ability to receive the maximum tax benefits available to them, following the introduction of the Federal Government superannuation legislation on 1 July 2017.
Qantas Super will use GBST’s TaxIntell solution to help its members manage the transition from the current tax system to the new tax regime, as well as meet the ongoing requirements of the new legislation. GBST TaxIntell allows comprehensive transparency and audit functionality, enabling ongoing management and calculation of capital gains tax (CGT) under the new CGT relief regime.
Under the new superannuation legislation, complying superannuation funds are granted relief from the tax consequences for capital gains accumulated before 1 July 2017. These gains would previously have been exempt, however are now taxable under the new legislation in cases where the total superannuation balance for a member is greater than $1.6 million.
The Australian Taxation Office (ATO) has allowed superannuation funds to apply for relief to defer the tax payable because CGT events were caused for superannuation funds when the mixed accumulation and pension assets needed to be sold down below the $1.6 million cap.
While very few Australian superannuation funds have opted to seek relief from the ATO because of the complexity of the calculation, Qantas Super, one of the largest corporate superannuation funds in Australia, wanted to ensure its members received all the tax benefits they were entitled to.
GBST TaxIntell enables Qantas Super with ability to take a snap shot of the 30 June 2017 position prior to the change, and to be able to maintain a set of tax records that have tagged those tax parcels that have been nominated as eligible for CGT relief. This will ensure ongoing maintenance and allows for future capital gains tax calculations and reporting, taking into account the deferred notional gain that resulted from the legislation.
GBST Head of Asia Pacific, Denis Orrock said Qantas Super members would benefit greatly from the foresight of Qantas Super in making the nomination for CGT relief. Mr Orrock said: “GBST is delighted TaxIntell is being utilised to achieve this significant outcome for Qantas Super who have leveraged GBST’s existing Tax Analyser software solution capability which is available to all funds in Australia.”
“With the evolution of our tax capability within the GBST suite of products and the introduction of TaxIntell Funds and their Custodians are not forced to make wholesale in-house changes of their capability when confronted by challenging and significant tax legislative change, GBST has created capability within the GBST product suite that will do much of the heavy lifting for them. GBST through TaxIntell and Tax Analyser deliver the calculation mechanism, the tax capability and a service proposition that will allow all superannuation funds to seek CGT relief from the ATO and benefit their entire membership base”, Mr Orrock said.
Qantas Super Chief Operations Officer, Peter Savage, said: “It’s important to our members that we seek the best solutions for them. This includes managing their benefits as tax-effectively as possible so they extract maximum value from the super savings that they’re working so hard to accumulate.
“Our collaboration with GBST has seen us navigate complex tax changes and identify an innovative solution that will improve investment outcomes for our members, and help us continue to build our members’ confidence in their financial future.”
GBST
Denis Orrock | Head of Asia Pacific | GBST
D: +61 2 9253 6540 | M: +61 401 285 176 | F: +61 2 8580 5245 | www.gbst.com
Qantas Super: Alethea Mouhtouris on 02 9691 9465, 0414 535 889
GBST is a specialist financial technology company which provides administration and transaction processing software for retail wealth management organisations and global and regional investment banks. Founded in 1983, GBST is listed on the Australian Securities Exchange under ASX ticker code GBT.
Posted in: Tax and quantitative, Wealth Management Administration
