Superannuation Alert - 13.11.13
Finanical Services eBulletin - 13 November 2013 - 13 November 2013
- On 6 November 2013 Treasurer Joe Hockey and Assistant Treasurer Arthur Sinodinos announced that the former Labor government's plan to establish a council of superannuation guardians would be scrapped.
- On 6 November 2013, the Government confirmed that it will not proceed with Labour's proposal which would have capped the tax exemption for earnings on superannuation fund assets supporting pensions at $100,000 pa per person from 1 July 2014. Under Labor's proposal (announced on 5 April 2013), a tax rate of 15% was proposed for superannuation fund earnings (such as dividends, interest, rent and realised net capital gains) on pension assets above $100,000 pa per person.
- On 7 November 2013, APRA released 8 final prudential practice guides (PPGs) for the superannuation industry together with a response paper entitled "Second set of prudential practice guides for superannuation". APRA consulted in May 2013 on draft versions of the PPGs it has released today. The response paper outlines the key issues raised in submissions it received and how they have been addressed in the final PPGs, where appropriate. The 8 superannuation PPGs are:
- Prudential Practice Guide SPG 160 Defined Benefit Matters;
- Prudential Practice Guide SPG 222 Management of Reserves;
- Prudential Practice Guide SPG 511 Remuneration;
- Prudential Practice Guide SPG 530 Investment Governance;
- Prudential Practice Guide SPG 531 Valuation.
Updates to existing superannuation PPGs:
A final remaining PPG, Prudential Practice Guide SPG 310 Audit and Related Matters, will be released before the end of 2013.
- On 7 November 2013, in a speech delivered at the national conference of the Association of Independently Owned Financial Professionals, the Assistant Treasurer confirmed the Government's intention to issue a discussion paper before the end of the year which will contain outstanding issues from the previous government on MySuper, including the product dashboard, investment statements and the governance of super funds. The Coalition had previously committed to conduct a "son of Wallis" root and branch inquiry into the financial system, including a focus on superannuation. A copy of this speech is provided here.
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