Superannuation Alert - 18.03.15
Financial Services eBulletin - 18 March 2015
The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
- On 10 March 2015 the Australian Transaction Reports and Analysis Centre Industry Contribution Census Day Determination 2015 (No 1) (the Determination) commenced. The Determination relates to the Australian Transaction Reports and Analysis Centre Industry Contribution Act 2011 (Cth) which implements the replacement of the AUSTRAC Supervisory Levy by an industry contribution payable by "leviable entities". A "leviable entity" is defined as a reporting entity that has provided a designated service within the previous financial year, is enrolled on the "Reporting Entities Roll" on the "census day", and is not an exempt entity for the current year. The Determination fixed the "census day" for the financial year beginning 1 July 2014 as 16 March 2015.
- On 11 March 2015 the Administrative Appeals Tribunal (AAT) handed down its decision in Ward and Commissioner of Taxation  AATA 138, finding that it had jurisdiction to review a decision by the Commissioner of Taxation (Commissioner) not to make a determination to disregard or reallocate excess superannuation contributions. In this case, the Commissioner issued a notice of assessment of excess non-concessional superannuation contributions tax to the taxpayer. The taxpayer applied to the Commissioner for a determination that a specified amount of his non-concessional superannuation contributions for the relevant year be disregarded. The Commissioner decided not to make such a determination. The taxpayer lodged an objection to that decision and the Commissioner disallowed the objection. The AAT's jurisdiction turned on whether a person could object against the Commissioner's decision not to make a determination. The AAT found that the ordinary meaning conveyed by the text of section 292-465(9)(a) of the Income Tax Assessment Act 1997 led to a "result that is manifestly absurd; namely, that the only people who can object against the Commissioner's decision are those who have no complaint with it". Giving consideration to the explanatory memorandum, the AAT found that it was "clear that that provision should be interpreted so as to grant a right to object where a person is dissatisfied with the Commissioner's determination or the Commissioner's decision not to make a determination". Accordingly, the AAT ruled that it had jurisdiction to review the Commissioner's decision to disallow the objection.
- On 12 March 2015 ASIC issued a letter to RSE licensees stating that it will consult with RSE licensees on proposed changes to Reporting Standard SRS 534.0 Derivative Financial Instruments (SRS 534.0), with a draft to be released for comment shortly. SRS 534.0 collects information on the types of derivative instruments used and individual holdings of over-the-counter derivatives. APRA will vary the reporting obligations to grant RSE licensees relief from the requirement to submit SRS 534.0 for the income year 2014-2015.
- On 13 March 2015 the Deputy Chairman of APRA, Ian Laughlin, delivered a speech on the subject of Risk Management and Governance. The speech addressed APRA's expectations of boards, the importance of risk management, APRA's approach to risk management and governance in terms of prudential standards and supervision, and some observations on APRA meetings with boards.
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