The Association of Superannuation Funds of Australia (ASFA) has welcomed a recent significant amendment the Trump administration has made to the ‘big beautiful bill’ it is looking to introduce in the United States.
Specifically, the retirement savings industry body has applauded the removal of section 899 of the bill. This measure would have penalised countries deemed to be imposing discriminatory taxes with an additional US tax liability of up to 20 per cent.
According to ASFA, this would have adversely affected Australian superannuation accounts with investments in the US market. To date these holdings total around A$700 billion or US$450 billion.
“The removal of section 899 from the One Big Beautiful Bill removes a threat to Australian superannuation accounts,” ASFA chief executive Mary Delahunty acknowledged.
Delahunty took the opportunity to applaud the role the Albanese government played in achieving such a positive result for the industry.
“The Australian government’s engagement with US counterparts has been skilful and productive, and Australian retirement savers are the winners,” she said.
ASFA gave recognition to the role domestic retirement savings vehicles play in the US economy. To this end, it stated Australian super funds invest in areas like infrastructure in projects such as roads and bridges. As such, the sector body described the development as a win-win situation for both countries.
Further, ASFA indicated it was pleased to have been able to work with Canberra to ensure Australian superannuants were delivered a better outcome from the bill.
The bill advanced in the US Senate over the weekend, with the chamber moving 51-49 to open debate on it. A final vote is expected to take place in the coming days.
The bill requires a simple majority to be passed by the Senate with the Republican Party holding 53 of 100 voting seats.
The proposed legislation will go back to the US House of Representatives should it win Senate approval.
