Statement from James Koval, Chief Policy & Advocacy Officer at ASFA:
This is a really welcome step from the US Treasury Secretary and the superannuation sector is monitoring developments closely.
There’s still a way to go – the amendments need to be made by lawmakers. There are a number of other amendments under consideration.
This section of the legislation would have changed the risk return profile of investment in the US, which would have been a poor outcome for all involved.
The superannuation sector has around USD$450 billion invested in the United States, the single largest market outside of Australia. This is money invested in US infrastructure, equities, bonds, and other areas.
ASFA has engaged closely with the Australian Government on this issue.
We know the Australian Government has been engaging strongly with their US counterparts and have been communicating the negative impact this measure could have on investment in the United States.
It is welcome to see the US Government listening and considering changes.
