Superannuation Alert - 18.10.12

Financial Services eBulletin - 18 October 2012

The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry and is in addition to our Superannuation Update, which analyses the main developments of interest in more detail.

  • On 9 October 2012 the Parliamentary Joint Committee on Corporations and Financial Services tabled its report on the Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012. A majority of the Committee recommended that the Bill be passed, while also recommending that APRA continue to consult with stakeholders on proposed "dashboard requirements".
  • On 10 October 2012 APRA released the Draft Prudential Practice Guide SPG 410 MySuper Transition, to guide superannuation fund trustees in complying with the proposed Superannuation Prudential Standard SPS 410: MySuper Transition. The accompanying letter notes that "APRA expects to release the final authorisation form, related instructions and SPS 410 by end November 2012".
  • On 11 October 2012 the Superannuation Legislation Amendment (New Zealand Arrangement) Bill 2012 was introduced into the Federal Parliament. According to the explanatory memorandum the Bill aims to "allow individuals to move their retirement savings between Australia and New Zealand." The New Zealand equivalent of this proposed legislation was also introduced in New Zealand recently.
  • Also on 11 October 2012 the ATO updated its website to include a statistical report on excess contributions tax (ECT), which applies to superannuation contributions in excess of annual caps. The report includes statistics on the number of ECT assessments issued, the value of ECT liabilities, the average and median values of liabilities raised, and the number of applications to disregard or reallocate contributions.
  • On 12 October 2012, the Productivity Commission released its Default Superannuation Funds in Modern Awards report (dated 5 October 2012) to the public. A key recommendation of the report is that a new Default Superannuation panel be created within Fair Work Australia to make decisions on the listing of default superannuation products.
  • The Victorian Supreme Court, Court of Appeal handed down its decision recently in Alcoa of Australia Retirement Plan Pty Ltd v Frost VSCA 238. The case involved an appeal by Alcoa against a County Court decision to set aside the Trustee's decision to refuse the member's application for a total and permanent disablement (TPD) benefit. The primary issue for the Court of Appeal was "whether the judge was correct in holding that the directors of the trustee were under a duty to seek relevant information sufficient to enable them to undertake a properly informed consideration of the application".

Further information

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