Superannuation Alert 2.4.14

Financial Services eBulletin - 2 April 2014

The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.

  • On 24 March 2014, the minister for Finance and Acting Assistant Treasurer, Senator Mathias Cormann issued a media release, confirming that the government remains committed to implementing its proposed FoFA changes "as soon as possible". Senator Cormann stated that the implementation of the Future of Financial Advice Regulations would be paused to allow good faith consultation with all relevant stakeholders in relation to the legislation which has been referred to the Senate committee. Senator Cormann confirmed that the Government is committed to the retention of the "best interest duty" and that they do not intend to reintroduce conflicted remuneration or sales commissions for financial advisers.

  • On 24 March 2014, the Treasurer announced the appointment of four international business people to an advisory panel to support the Financial System Inquiry. The International Advisory Panel will provide an expert perspective to the Financial System Inquiry on aspects of the Terms of Reference including technological change, Australia's global competitiveness and offshore regulatory frameworks. The new panel members are:
    • Sir Michael Hintze AM (London), founder and chief executive of CQS, a global multi-strategy asset management firm.
    • Dr David Morgan AO (London), head of private equity group JC Flowers in Europe and Asia Pacific.
    • Ms Jennifer Nason (New York), Global Chairman of Technology, Media and Telecom Investment Banking at JP Morgan Chase & Co.
    • Mr Andrew Sheng (Hong Kong), former central banker and financial regulator in Asia and a leading commentator on global finance.

  • On 24 March 2014, the ATO updated its website to note that from 1 July 2014 SMSF trustees are required to receive electronic messages and payment associated with employer contributions using the SuperStream data and payment standard.

  • On 25 March 2014, Treasury released for public comment an exposure draft for Tax and Superannuation Laws Amendment (2014 Measures No 2) Regulation 2014: Calculating defined benefit contributions - final arrangements from 1 July 2013 and the accompanying explanatory material. The draft Regulation prescribes the means for determining defined benefit contributions for Div 293 tax purposes in respect of the 2013-14 financial year as well as subsequent years. Comments are due by 8 April 2014.

  • On 25 March 2014, Treasury released for public comment an exposure draft for Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill 2014: Protection for discontinued announced measures and the accompanying explanatory material. The draft Bill seeks to implement the Government's announcement of a legislated protection of taxpayers in relation to announced but un-enacted tax and superannuation amendments. Comments are due by 22 April 2014.

  • On 25 March 2014, the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 was negatived at Second Reading stage in the Senate. Along with measures to repeal the mining tax, abolish company loss carry-back, and wind back capital allowance deductions for small business, the Bill also contained measures to repeal the low income superannuation contribution.

  • On 25 March 2014, APRA announced in a letter to RSE licensees that it has revised its following superannuation reporting standards:
    • Reporting Standard SRS 320.0 Statement of Financial Position; 
    • Reporting Standard SRS 330.0 Statement of Financial Performance; 
    • Reporting Standard SRS 520.0 Responsible Persons Information; 
    • Reporting Standard SRS 530.1 Investments and Investment Flows; 
    • Reporting Standard SRS 533.0 Asset Allocation; and 
    • Reporting Standard SRS 702.0 Investment Performance.

APRA has said that the revised reporting standards will take effect from 1 April 2014.

Further information

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.

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