Superannuation Alert - 5.6.13
Financial Services eBulletin - 5 June 2013
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 24 May 2013 APRA announced that it has "decided to defer commencement of the collection of Superannuation Reporting Form 711.0 SuperStream Benchmarking Measures (SRF 711.0) until the first quarter of 2014-15" which means that "the first submission of data will not be due until 28 October 2014." APRA said it made its decision to defer after receiving submissions from ASFA, AIST and FSC "which raised concerns in relation to the proposed implementation timeframe and aspects of the proposed content of SRF 711.0."
- On 28 May 2013 the Tax and Superannuation Laws Amendment (2013 Measures No. 2) Bill 2013 was passed by the House of Representatives. Amongst other proposed changes, the Bill amends the Superannuation Industry (Supervision) Act 1993 to "require trustees to establish and implement procedures in relation to the consolidation of multiple member accounts". The Bill also amends the Superannuation (Government Co-contribution for Low Income Earners) Act 2003 to "reduce the amount of superannuation co-contribution available from the 2012-13 financial year."
- On 29 May 2013 the Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill 2013 was introduced in the House of Representatives. According to the Explanatory Memorandum, the Income Tax Assessment Act 1997 will be amended to:
"facilitate the Government’s MySuper reforms by providing income tax relief to superannuation funds where there is a mandatory transfer of default members’ account balances to a MySuper product in another superannuation fund… In particular, these amendments ensure that a complying superannuation fund that mandatorily transfers account balances of default members to other funds under the MySuper reforms can:
- transfer losses to other entities; and
- defer an income tax liability for assets transferred to other entities so that a liability will not arise until an ultimate disposal of the asset by the other entity."
The rationale for this income tax relief is "to ensure default members of superannuation funds are not adversely affected if their superannuation benefits are mandatorily transferred to another fund as a result of the MySuper reforms." These amendments are to apply to the income year of the superannuation fund that includes 1 July 2013 and the following income years if the accrued default amounts of members are transferred between 1 July 2013 and 1 July 2017. These dates are consistent with the date of introduction of MySuper and the deadline for the transfer of default members’ accrued default amounts to a MySuper product.
- On 29 May 2013 the Privacy Amendment (Privacy Alerts) Bill 2013 was introduced in the House of Representatives. The Bill will commence "immediately after the amendments to the Privacy Act 1988 contained in the Privacy Amendment (Enhancing Privacy Protection) Act 2012 commence on 12 March 2014." According to the Explanatory Memorandum, the Bill:
"amends the Privacy Act to introduce mandatory data breach notification provisions for agencies and organisations that are regulated by the Privacy Act."
- "implements the ALRC’s recommendation by requiring agencies and organisations regulated by the Privacy Act to provide notice to the Australian Information Commissioner and affected individuals of a serious data breach."
- On 30 May 2013 Superannuation Industry (Supervision) Amendment Regulation 2013 (No. 3) was registered on the Federal Register of Legislative Instruments. The Regulation amends the Superannuation Industry (Supervision) Regulations 1994 to implement a trans-Tasman retirement savings portability scheme. Australians and New Zealanders who move permanently between Australia and New Zealand will also be able to transfer their superannuation as well. The amendments commence on the day the portability arrangement between the Australian and New Zealand governments comes into force.
All information on this site is of a general nature only and is not intended to be relied upon as, nor to be a substitute for, specific legal professional advice. No responsibility for the loss occasioned to any person acting on or refraining from action as a result of any material published can be accepted.