The announcement of capital gains tax (CGT) roll-over relief for intermediaries has been welcomed by the National Insurance Brokers Association (NIBA) and the Investment and Financial Services Association (IFSA). Assistant Treasurer Helen Coonan announced yesterday that the relief is to be granted to licensees seeking to transition to the Financial Services Reform Act licensing regime.

The need for capital gains tax roll-over relief was identified by IFSA and NIBA three years ago. NIBA CEO Noel Pettersen said that since then the peak bodies representing life insurers, fund managers and insurance brokers have “worked tirelessly” to ensure none of their members transferring to the new regime would be disadvantaged by CGT rules.

A taskforce including representatives from the associations worked with Government agencies to frame the proposed amending legislation. Senator Coonan said the legislation will be introduced into Parliament later this year.

NIBA CEO Noel Pettersen and his IFSA counterpart, Richard Gilbert, said in a statement that the combined taskforce has achieved “a major milestone for FSR and the removal of a significant obstacle”.

“Our respective members can now move into the new licensing regime with the confidence that they will not be penalised by what would have been unintended tax consequences.”