Superannuation Alert 13.10.15
Financial Services eBulletin - 13 October 2015
The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
- On 2 October 2015, the ATO advised in an update to its 'Completed Matters' page that it has decided after consultation that it will not proceed with a final version of Draft Ruling TR 2013/D7 (Apportionment of superannuation fund expenses partly for non-assessable income) and that the second planned ruling will not be written. Instead, an Addendum to Ruling TR 93/17 (Deductions for superannuation funds) will be issued that covers the key issues that TR 2013/D7 and the proposed second ruling were to address. The Addendum is expected to be issued this month.
- On 7 October 2015, the draft legislation program for the House of Representatives was released, revealing that debate on the Superannuation Legislation Amendment (Trustee Governance) Bill 2015 will resume on 15 October 2015. The Superannuation Legislation Amendment (Trustee Governance) Bill 2015 proposes amendments to the Superannuation Industry (Supervision) Act 1993 to require a minimum of one-third independent directors and an independent Chair on the board of all registrable superannuation entities.
- On 8 October 2015, Roger Brake of the Treasury Revenue Group gave a speech in which he provided an 'inside perspective into the Tax White Paper process'. Mr Blake noted that superannuation was among the top five tax topics mentioned in the Tax White Paper Taskforce submissions and that although there was support for reducing existing superannuation concessions, there was no clear agreement on how this was to occur. Mr Brake stated that the next major step in the process is the release by the Government of the Options (Green) Paper. Mr Blake also noted that Treasury is assisting the Government to work through the various options and choices that could be included. However, no timeline was given in relation to these next steps.
- On 8 October 2015, the ATO issued a statement setting out the measures that are underway to implement the Government's plans to reduce red tape for superannuation funds and individuals by removing redundant reporting obligations and streamlining lost and unclaimed superannuation administrative arrangements. The changes will be implemented progressively from 31 December 2015 and include:
- removal of the lost member statement;
- updating the 'uncontactable' definition for lost member accounts;
- removal of 'employer-sponsored' element of the 'lost - inactive' definition;
- allowing proactive Eligible Rollover Fund consolidation;
- enabling payment of Unclaimed Superannuation Monies claims to trans-Tasman Kiwi Saver Accounts; and
- direct payment of Unclaimed Superannuation Monies on terminal medical grounds.
- Reminder: Comments to Treasury on the exposure draft of Superannuation Law Amendment (Unclaimed Superannuation Money) Regulation 2015 and the accompanying Explanatory Statement will close on 20 October 2015.
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