Superannuation Alert - 7.5.15

Financial Services eBulletin - 7 May 2015

The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.

  • On 28 April 2015, ASIC registered ASIC Corporations (Amendment No 3) Instrument 2015, which extends the operation of ASIC Class Order [CO 10/630] (which amends the long-term performance disclosure requirements in the Corporations Regulations 2001) to 31 December 2015. Further information about the background, purpose and operation of the instrument is contained in the Explanatory Statement to the instrument.
  • On 29 April 2015, APRA Member Helen Rowell delivered a speech titled "The super system - what is on APRA's watch list?" at the AFR Banking & Wealth Summit in Sydney. Member Rowell discussed APRA's expectations of superannuation trustees, governance, risk management and risk culture, investment governance and MySuper, among other things.

  • On 30 April 2015, the Repeal of Regulations Postponement Bill 2015 (Tas) was passed by the Legislative Council of the Parliament of Tasmania. The Second Reading Speech explains that the purpose of the Bill is to postpone the automatic repeal of the Retirement Benefits Regulations 2005 (Tas) from 1 July 2015 to 1 July 2017. According to the Second Reading Speech the Retirement Benefits Regulations "deal largely with the rules and operational requirements of the administration of the Retirement Benefits Fund defined benefit schemes for the purposes of the Retirement Benefits Act 1993."

  • On 30 April 2015, the ATO updated its key superannuation rates and thresholds that apply to contributions and benefits, employment termination payments, super guarantee and co-contributions.

  • On 1 May 2015, the Assistant Treasurer Josh Frydenberg issued a media release announcing that the Government will provide the Commissioner of Taxation with "a statutory remedial power to allow for a more timely resolution of certain unforseen or unintended outcomes in taxation and superannuation law…[which would] allow the Commissioner to make a disallowable legislative instrument that will have the effect of modifying the operation of the taxation and superannuation law to ensure the law can be administered to achieve its purpose or object." The media release notes that there are similar legislative instrument making powers currently granted to the Australian Prudential Regulation Authority and to the Australian Securities and Investments Commission.

  • On 28 April 2015, the Supreme Court of South Australia handed down its decision in South Australian Superannuation Board (Super SA) v McIntyre [2015] SASCFC 57. The case concerned the entitlement of a member of the Southern State Superannuation Scheme's (Scheme) to an invalidity insurance benefit. The Scheme was established under the Southern State Superannuation Act 1994 (SA) (SSSA). The member's claim for an invalidity insurance benefit was initially refused by the administrator of the Scheme, the South Australian Superannuation Board (Board). The member successfully appealed to the District Court against the refusal. The Board appealed the decision of the District Court to the Full Court of the Supreme Court of South Australia, which held that the primary judge had erred in finding that the member satisfied all of the requirements under the SSSA to be entitled to the invalidity insurance benefit. However, the Full Court dismissed the appeal on the basis that the failure to satisfy the requirements of the SSSA was not an issue raised before the primary judge and therefore it should not be raised for the first time on appeal.

  • On 1 May 2015, in Re Shaw and FCT [2015] AATA 288 the Administrative Appeals Tribunal affirmed the Commissioner of Taxation's decision not to exercise its discretion under section 126D the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act) to waive the status of the applicant as "disqualified person" under section 120 of the SIS Act.

 

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