Superannuation Alert 18.05.17
Financial Services eBulletin - 18 May 2017
The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
|Legislative update||External dispute resolution and complaints framework||Consultation paper and exposure draft legislation||
On 9 May 2017, the Government released the final report of the Ramsay Review (a review of the financial system external dispute resolution and complaints framework), accepting all 11 recommendations.
These recommendations include the establishment of a one-stop shop for all financial disputes, including superannuation disputes. The Government is now undertaking four weeks of public consultation on the new dispute resolution framework, comprising a consultation paper and an exposure draft Bill and Regulations.
Submissions are due on 14 June 2017.
|Legislative update||Legislation to increase Commonwealth penalty unit passed||Crimes Amendment (Penalty Unit) Bill 2017||
On 11 May 2017, the Senate passed the Crimes Amendment (Penalty Unit) Bill 2017 (Bill) without amendment. The Bill now awaits Royal Assent.
The Bill amends the Crimes Act 1914 (Cth) to:
The Explanatory Memorandum to the Bill is available by clicking here.
|Federal politics||Bill Shorten's Budget-in-Reply speech||Speech
On 11 May 2017, Federal Opposition Leader Bill Shorten delivered his Budget-in-Reply speech in the House of Representatives.
The key point related to superannuation is that Labor will oppose the Government's proposal to allow first home buyers to save $30,000 in pre-tax income through their superannuation account.
|ATO||New transfer balance cap - payment splits||
From 1 July 2017, a $1.6 million cap applies to the total amount that can be held in the tax-free retirement phase for account-based pensions. According to the ATO, payment splits following a divorce or relationship breakdown are subject to special rules.
The ATO explains the impact on a member spouse's transfer balance account in situations where a payment split involves the member spouse:
The ATO has provided examples to assist in the application of the transfer balance cap to payment splits.
|Productivity Commission||Data availability and use||
On 8 May 2017, the Productivity Commission released its inquiry report on data availability and use.
According to the Productivity Commission, the report "offers guidance on where the benefits of greater data use may be most evident, and ways that governments might engage with the public to generate community understanding of the costs, risks, and benefits associated with data sharing and use".
Key recommendations from the report include:
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