Superannuation Alert 07.07.16
Financial Services eBulletin - 7 July 2016
The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
- On 24 June 2016, the District Court of Queensland (Court) handed down its decision in Wilkin v TAL Life Limited & Anor  QDC 157. The decision set aside a determination made by the insurer to decline the plaintiff's claim for a total and permanent disablement benefit. The Court found that the determination made by the insurer was subject to a question of uncertainty about the plaintiff's capacity to return to work and, given the lack of medical evidence available, the determination was remitted back to the insurer to be decided according to law once further reports were available.
- On 4 July 2016, the Superannuation Supervisory Levy Imposition Determination 2016 was registered. The determination is made under subsection 7(3) of the Superannuation Supervisory Levy Imposition Act 1998 (Cth) and sets out the amounts payable by superannuation entities for the 2016-17 financial year. The determination specifies that superannuation funds other than small APRA funds and single member approved deposit funds are subject to a minimum of $2,500 and a maximum of $260,000 restricted levy amount. The restricted levy amount is calculated at 0.00324% of assets held by the entity and the unrestricted component of the levy is calculated at 0.007075% of assets held by the entity.
- On 4 July 2016, the Australian Prudential Authority (Commonwealth Costs) Determination 2016 was registered. The determination is made under paragraph 50(1)(a) and subsection 50(1A) of the Australian Prudential Regulation Authority Act 1998 (Cth) and repeals the Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2015 (Cth). The Explanatory Statement provides that the determination sets out the amount of levy that is to be "available to cover the costs to the Commonwealth of providing market integrity and consumer protection functions for prudentially regulated institutions, administering the function of making determinations about the release on compassionate grounds of benefits that are in a superannuation entity or retirement savings account and implementing the SuperStream measures". The determination states that the amount allocated to activities undertaken by ASIC, ATO, the Department of Human Services and the implementation of the SuperStream measures is equal to $128,600,000 in 2016-17. The proportion of amounts of levy money paid to APRA, on behalf of the Commonwealth for 2016-17, that is to be credited to APRA on an ongoing basis is 48.7 per cent.
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