Superannuation Alert 28.04.17

Financial Services eBulletin - 28 April 2017

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

Type Subject matter Source Description
Senate Economics References Committee Non-payment of superannuation guarantee Interim report

On 10 April 2017, the Senate Economics References Committee released its interim report for its inquiry into the impact of non-payment of the superannuation guarantee contributions.

The terms of reference for the inquiry included:

  • the economic impact on workers, their superannuation balances and retirement incomes;
  • the accuracy and adequacy of information and data collected by agencies, such as the ATO, APRA and ASIC, relating to non-payment of superannuation guarantee contributions; and
  • the appropriateness of the ATO's responses to complaints and 'tip-offs' relating to non-payment superannuation guarantee contributions.

The inquiry has been conducted online, and through submissions and public hearings. The Committee aims to have a final report tabled on 2 May 2017.

Case update Appeal from Superannuation Complains Tribunal Edwards v Commonwealth Superannuation Corporation [2017] FCA 375

On 12 April 2017, the Federal Court handed down its decision in Edwards v Commonwealth Superannuation Corporation [2017] FCA 375.

In this case, the appellant's claim, due to constraints on his standing to appeal under the Administrative Decisions (Judicial Review) Act 1977 (Cth), was limited to:

  • a determination that section 114 of the Superannuation Act 1976 (Cth) does not authorise the Commonwealth Superannuation Corporation (CSC) to pay spousal benefits attributable to children directly to children; and
  • a determination that the CSC is authorised to pay interest on arrears of pensions under section 27C(2)(g) of the Superannuation Act 1976 (Cth) and what the applicant termed 'the implied covenants' under sections 52 and 101 of the Superannuation Industry (Supervision) Act 1993 (Cth).

In relation to the determination regarding payments directly to children, the Court stated: "the terms of s 114(2) make it clear…that the legislature contemplated a payment might be made directly to a child".

In relation to the determination regarding the payment of interest, the Court stated: "on its face, [s 27C(2)(g) of the Superannuation Act 1976 (Cth)] cannot be said to confer an implied power to pay interest on arrears of any benefits payable...The argument that it can is circular. Nor can s 52 of the [Superannuation Industry (Supervision) Act 1993 (Cth)] and the general covenants be said impliedly to authorise the payment of interest. There is no basis in the text, context or purpose of those covenants to see them as supplementing the express powers given to trustees under ss 27D or 109AB [of the Superannuation Act 1976 (Cth)]".

The Federal Court dismissed both applications.
AUSTRAC Draft AML/CTF Rules released for public consultation Draft AML/CTF Rules resulting from the Review of the Act

On 24 April 2017, AUSTRAC released draft amendments to the Anti-Money Laundering and Counter Terrorism Financing Rules Instrument 2007 as a result of the AUSTRAC consultation in 2016 on the review of the Anti-Money Laundering and Counter Terrorism Financing Act 2006.

Draft amendments have been proposed to:

  • Chapter 1 (Definitions);
  • Chapter 4 (Customer due diligence);
  • Chapters 8 and 9 (AML/CTF Programs);
  • Chapter 15 (Ongoing customer due diligence);
  • Chapter 30 (Disclosure certificates); and
  • Chapter 36 (Corporate structures).

Submissions are due by 22 May 2017.

 

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