Superannuation Alert - 6.08.13

Financial Services eBulletin - 6 August 2013

Summary

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 31 July 2013 the Treasurer issued media release 2013-012, announcing "the Rudd Labor Government will make no major changes to superannuation tax policy for five-year periods, promoting confidence and stability in the superannuation system. This will be enshrined in legislation by a re-elected Rudd Labor Government."
    • The media release also announced that the Government will bring forward legislation to establish the Super Council, "to ensure any future changes to superannuation are consistent with an agreed Charter of Superannuation Adequacy and Sustainability.
    • "The Council will have no regulatory powers or function, but it will have the power to initiate its own inquiries into matters connected with the Charter principles."
  • On 31 July 2013 the Treasurer issued a further media release, 2013-013, stating that, referring to the Stronger Super reforms, "as part of this improvement to the system, the Government has listened to the concerns of the industry, and would support ASIC providing additional time for organisations to implement the required changes … the Government supports calls for extending the compliance date until 31 December 2013."
  • On 31 July 2013 the ATO released Taxation Ruling TR 2013/5 explaining "when a superannuation income stream commences and when it ceases, and consequently when a superannuation income stream is payable. These concepts are relevant to determining the income tax consequences for both the superannuation fund and the member in relation to superannuation income stream benefits paid."

The Ruling applies to superannuation income streams taken to be a pension in accordance with subregulation 1.06(1) of the Superannuation Industry (Supervision) Regulations 1994 (Cth). "Although there are various pension types that satisfy subregulation 1.06(1) of the SISR 1994, this Ruling applies to a pension that satisfies subregulation 1.06(1) and paragraph 1.06(9A)(a) of the SISR 1994."

  • On 1 August 2013 ASFA issued a media release announcing "that it will convene an industry wide forum to create a mechanism for dialogue between all industry bodies which have an interest in superannuation public policy." CEO Pauline Vamos stated "we are heartened by the announcement from the FSC and Industry Super Network today that they are ending their public skirmishes and intend to work together in the interests of fund members."

Further information

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.