Superannuation Alert 16.09.16
Financial Services eBulletin - 16 September 2016
The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
- On 9 September 2016, Assistant Treasurer Kelly O'Dwyer announced that the panel conducting 'a review of the financial system’s external dispute resolution and complaints framework' on behalf of Treasury has released an issues paper titled 'Review of the financial system external dispute resolution framework'. The panel has been asked to 'examine the Financial Ombudsman Service, the Credit & Investments Ombudsman and the Superannuation Complaints Tribunal and consider whether changes to these bodies are necessary to deliver effective outcomes for users in a rapidly changing and dynamic financial system'. In respect of the Superannuation Complaints Tribunal, the issues paper seeks feedback on the positive and negative aspects of the existing arrangement, its accessibility and effectiveness as an 'avenue for resolving consumer complaints', and changes that are necessary to adapt to 'changes in markets or the needs of users'. The issues paper also contemplates alternative models of dispute resolution, as well as an additional forum for dispute resolution. The panel is seeking information from interested stakeholders until 7 October 2016.
- On 14 September 2016, the Tax and Superannuation Laws Amendment (2016 Measures No. 2) Bill 2016 was introduced in the House of Representatives. According to the Explanatory Memorandum, the Bill relevantly 'establishes a Remedial Power for the Commissioner of Taxation (Commissioner) to allow for a more timely resolution of certain unforeseen or unintended outcomes in the taxation and superannuation laws…by allowing the Commissioner to make, by disallowable legislative instrument, one or more modifications to the operation of a taxation law to ensure the law can be administered to achieve its intended purpose or object' provided certain conditions are met.
- On 15 September 2016, the Treasurer the Hon. Scott Morrison announced that the Government would not pursue the introduction of a lifetime non-concessional cap of $500,000 which was announced in the 2016-17 Budget. The Treasurer explained that it will instead 'be replaced by a new measure to reduce the existing annual non-concessional contributions cap from $180,000 per year to $100,000 per year' and that the 3-year 'bring forward' rule will still apply. The Treasurer explained that these under these measures, with individuals' annual concessional contributions, 'Australians will be able to contribute $125,000 each year and, if taking advantage of the non-concessional ‘bring forward’, up to $325,000 in any one year until such time as they reach $1.6 million.' Further to 'offset the cost of reverting to a reduced annual non-concessional cap, the Government will now not proceed with the harmonisation of contribution rules for those aged 65 to 74'. Additional contributions can continue to be made by people 'aged 65 to 74 who satisfy the work test'.
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