Superannuation Alert - 14.6.13
Financial Services eBulletin - 14 June 2013
The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry and is in addition to our Superannuation Update, which analyses the main developments of interest in more detail.
On 31 May 2013 the Government released an exposure draft of the Income Tax Assessment and other Legislation (Sustaining the Superannuation Contribution Concession) Amendment Regulation 2013. According to the Treasury website, the draft regulation includes "the methodology for calculating notional contributions for defined benefit interests" and "supports the changes introduced in the Tax and Superannuation Laws Amendment (Increased Concessional Contributions Cap and Other Measures) Act 2013 and Superannuation (Sustaining the Superannuation Contribution Concession) Imposition Act 2013."
- On 31 May 2013 Minister Shorten announced that "arrangements for the trans-Tasman retirement savings portability scheme have been finalised [on 31 May 2013], with regulations to implement the scheme registered and diplomatic notes exchanged between the Governments of Australia and New Zealand." The trans-Tasman scheme commences on 1 July 2013.
- On 31 May 2013 the Superannuation Data and Payment Standards (Minor Amendments) 2013 was registered on the Federal Register of Legislative Instruments. According to the explanatory statement, the Standard "removes unnecessary definitions from the Superannuation Data and Payment Standards 2012 and ensures consistency to the extent necessary as between the Superannuation Data and Payment Standards 2012 (including its Schedules) and, when registered, the RSA Data and Payment Standards 2013 (including its Schedules)." The Standard commenced on 1 June 2013.
- On 31 May 2013 the RSA Data and Payment Standards 2013 were registered on the Federal Register of Legislative Instruments. According to the explanatory statement, the Standard "specifies the minimum requirements for dealing with payments and information relating to certain transactions within the superannuation system including employer contributions to RSA providers, rollovers and transfers between RSA providers and superannuation entities and associated reporting obligations for superannuation purposes." The Standard commenced on 1 June 2013.
- On 31 May 2013 APRA published Prudential Standard SPS 450 Eligible Rollover Fund (ERF) Transition and the corresponding response to consultation on SPS 450. This was followed on 4 June 2013 by registration of Superannuation (prudential standard) determination No 1 of 2013 - Prudential Standard SPS 450 - Eligible Rollover Fund (ERF) Transition on the Federal Register of Legislative Instruments. As outlined in the Prudential Standard, it "sets out minimum processes for RSE licensees of existing eligible rollover funds (ERFs) in relation to the requirement under section 394 of the Superannuation Industry (Supervision) Act 1993 to transfer the amount held in the ERF to a regulated superannuation fund that is an authorised ERF or that offers a MySuper product within 90 days of 1 January 2014." The key requirements of the Prudential Standard include "the identification of a suitable authorised ERF or RSE offering a MySuper product; the preparation and implementation of a transition plan addressing the movement of the amount held in the ERF to the identified successor entity; and specified reporting to APRA." The Prudential Standard commences on 1 July 2013.
- On 3 June 2013 the Treasury and APRA issued a consultation paper seeking submissions on the proposed financial industry levies that will apply for the 2013-14 financial year. The paper "sets out information about the total expenses for the activities to be undertaken by APRA and certain other Commonwealth agencies and departments in 2013-14 to be funded through the commensurate levy revenue to be collected in 2013-14." The paper also provides an "explanation of the cost drivers resulting in the change in the total levy revenue from 2012-13 to 2013-14." Submissions close on 14 June 2013.
- On 3 June 2013 Minister Shorten published a media release urging "those interested in the future of super to have their say by making a submission or attending a public forum on Australia's first Super Charter." Mr Shorten advised that the Charter Group is currently drafting the Charter of Superannuation Adequacy and Sustainability and is seeking submissions on the establishment of a Council of Superannuation Custodians. Further details, including registration requirements, are available on the Super Charter website. Consultation closes on 21 June 2013.
- On 6 June 2013 APRA published a letter to RSE licensees and final versions of 32 reporting standards, reporting forms and instructions for APRA-regulated superannuation funds. According to APRA's media release, "APRA’s reporting requirements implement the transparency and accountability recommendations from the Government’s Stronger Super reforms, and the superannuation reporting proposals on which APRA had previously consulted in 2009. The new requirements also support the implementation of prudential standards, MySuper products and SuperStream. These revisions will be the first changes to the reporting requirements for superannuation since 2004." APRA said the release of this package "follows the release of ‘proposed final’ versions of 35 reporting standards, reporting forms and instructions on 28 March 2013 and the determination of one of those proposed final standards, Reporting Standard SRS 001.0 Profile and Structure (Baseline), on 30 April 2013. Only minor amendments have been made to the 32 reporting standards released [on 6 June 2013], mostly for editing or clarification purposes." APRA noted that the "two remaining standards, Reporting Standard SRS 702.0 Investment Performance and Reporting Standard SRS 703.0 Fees Disclosed, are not included in [the 6 June 2013] release." APRA said that "these two forms are relevant to the product dashboard and disclosure requirements, were subject to significant feedback during consultation with industry, and are currently being finalised." APRA expects that these two reporting standards, along with draft Reporting Standard SRS 700.0 Product Dashboard, "will be released in the coming weeks for further consultation."
All information on this site is of a general nature only and is not intended to be relied upon as, nor to be a substitute for, specific legal professional advice. No responsibility for the loss occasioned to any person acting on or refraining from action as a result of any material published can be accepted.