Superannuation alert - 11.9.14
Financial Services eBulletin - 11 September 2014
The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
- On 4 September 2014 the motion in the Senate to partially disallow the Corporations Amendment (Streamlining Future of Financial Advice) Regulation 2014 was postponed until 22 September. The Regulation makes various changes to the "Future of Financial Advice" provisions of the Corporations Act, which are explained in the Explanatory Statement.
- Also on 4 September 2014, the Senate referred the Corporations Amendment (Streamlining of Future Financial Advice) Bill 2014 to the Senate Economics Legislation Committee for inquiry and report. The Bill makes various amendments to the Future of Financial Advice provisions of the Corporations Act, as explained in the accompanying Explanatory Memorandum. The Senate Economics Legislation Committee has invited interested parties to make submissions on the Bill on or before 15 September 2014. The Committee's report is due by 30 September 2014.
- The Minerals Resource Rent Tax Repeal and Other Measures Bill 2014, which repeals the mining tax and associated measures, received royal assent on 5 September 2014 after being passed by the Senate on 2 September with various amendments agreed between the government, the Palmer United Party and Senator Muir (with the House of Representatives agreeing to those amendments on 3 September). According to the Supplementary Explanatory Memorandum, under the Bill:
- the previously legislated increases to the superannuation guarantee (SG) charge percentage are re-phased so that the current SG rate of 9.5% is paused for financial years up to and including 2020-21, with the SG rate then increasing by half a percentage point each year, until it reaches 12% for years starting on or after 1 July 2025; and
- the Low Income Superannuation Contribution is repealed, with the repeal date applying to concessional contributions made for the 2017-18 and later financial years.
- On 8 September the Corporations Amendment (Statement of Advice) Regulation 2014 was registered. The Regulation commences on 1 January 2015. According to the Explanatory Statement the Regulation makes various changes to requirements applying to Statements of Advice issued under Part 7.7 of the Corporations Act, including additional disclosure requirements in the Statement of Advice (requiring an adviser to disclose existing obligations in the Corporations Act) and requirements for the adviser and the client to sign the Statement of Advice, as well as any instructions from clients for further or varied advice.
It is intended that the changes in the Regulation will be repealed once the Corporations Amendment (Streamlining of Future Financial Advice) Bill 2014 passes the Parliament.
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