Superannuation Alert 16.7.14
Financial Services eBulletin - 16 July 2014
The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
- On 30 June 2014, the Tax Laws Amendment (Implementation of the FATCA Agreement) Act 2014 received Royal Assent. The Act makes amendments to the Income Tax Assessment Act 1997 and the Taxation Administration Act 1953 to require Australian financial institutions to:
- collect and provide information to the Commissioner of Taxation about customers that are likely to pay tax in the United States of America; and
- give the Commissioner information about payments made to non-participating financial institutions for the 2015 and 2016 years.
- On 2 July 2014, the Retirement Savings Account Providers Supervisory Levy Imposition Determination 2014 and the Superannuation Supervisory Levy Imposition Determination 2014 were registered with the Federal Register of Legislative Instruments. These instruments provide for the amounts payable by superannuation entities in respect of the levy imposed by the Superannuation Supervisory Levy Imposition Act 1998 for the 2014-15 financial year.
- On 3 July 2014, ASIC published a media release announcing that from 1 July 2014 financial advisers who provide tax (financial) advice services will be regulated by the Tax Practitioners Board under the Tax Agent Services Act 2009.
- On 7 July 2014, APRA released a discussion paper titled Reporting standards for select investment options outlining APRA's proposals for revising the reporting requirements for the superannuation industry in respect of select investment options. Proposed changes include:
- amending the definition of select investment option;
- removing the requirement to report under Reporting Standard SRS 330.1; and
- introducing two forms for select investment option reporting.
- On July 7 2014, the Financial Ombudsman Service (FOS) released the consultation paper Proposed Terms of Reference Changes. FOS is seeking comment on, among other things, whether its current $500,000 jurisdiction limit should be increased (by indexation) and on its proposals to streamline its dispute resolution processes. Any proposed changes that FOS implements to the Terms of Reference would have a starting date of 1 January 2015 unless a different date is specified. As part of the consultation process FOS also released:
- Terms of Reference Proposed Changes - Issues for Consideration and Possible Approaches;
- an annotated version of the proposed revised Terms of Reference; and
- Operational Guidelines Updates, containing a draft of the proposed Operational Guidelines which explains the amendments.
Comments are due by 1 August 2014.
- On 8 July 2014, ASIC published a media release announcing the release of Report 398 - Fee and cost disclosure: Superannuation and managed investment products. The report discusses the outcomes of ASIC's review of fee and cost disclosure practices in the superannuation and managed investment industry. The report indicates that there is "significant variation" in the disclosure of fees and costs across the industry and discusses identified key causes of such variation and under-disclosure.
- On 10 July 2014, the Corporations Amendment (Streamlining Future of Financial Advice) Regulation 2014 was tabled in the Senate. The Regulation was registered on 30 June 2014 and intends to give effect to the Government's proposed amendments to the FoFA legislation. The Regulation makes interim amendments to the Corporations Regulations 2001 which apply until the end of 2015.
- On 11 July 2014, an exposure draft of the Tax and Superannuation Laws Amendment (2014 Measures No. 4) Bill 2014 was released. The purpose of the draft Bill is to amend the Income Tax Assessment Act 1997 and the Taxation Administration Act 1953 to allow foreign pension funds access to the managed investment trust withholding regime and the corresponding decreased tax rate on their Australian investments.
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.