Superannuation Alert 3.7.14
Financial Services eBulletin - 3 July 2014
The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
- On 23 June 2014, the Administrative Appeals Tribunal (AAT) found in Vuong and Commissioner of Taxation  AATA 402 that the full amount of superannuation accessed early by an unwitting victim of a scam should be fully assessable for income tax. Mr Vuong had sought to access his superannuation early by rollover into a fund which proved to be fraudulent, induced by a person who took a 29 per cent fee of his $114,000 of superannuation. The AAT affirmed the Commissioner of Taxation's decision that the full amount was assessable and that the missing 29 per cent was not a deductible expense. However, the AAT considered that the Commissioner should exercise its discretion to waive a 25 per cent administrative penalty it had imposed, on the basis that Mr Vuong had "suffered greatly and disproportionately in circumstances where he is culpable only of pronounced naivety, unaccompanied by duplicitous intentions".
- On 24 June 2014, ASIC announced that Industry Super Australia will change its super choice advertising campaign 'Compare the pair' in response to concerns raised by ASIC. Commissioner Greg Tanzer said that ASIC was concerned that consumers may be misled by the advertisements that ran from February to May in 2014 and that ASIC is pleased that Industry Super Australia has worked cooperatively with it.
- On 25 June 2014, the Tax Laws Amendment (Temporary Budget Repair Levy) Bill 2014 and a suite of 14 supporting Bills received Royal Assent, having passed through all stages of Parliament without amendments. The Bills form the vehicle for the introduction of a three-year progressive budget repair levy. The Bills included the following three superannuation-related Bills:
- Superannuation (Departing Australia Superannuation Payments Tax) Amendment (Temporary Budget Repair Levy) Bill 2014;
- Superannuation (Excess Non concessional Contributions Tax) Amendment (Temporary Budget Repair Levy) Bill 2014; and
- Superannuation (Excess Untaxed Roll over Amounts Tax) Amendment (Temporary Budget Repair Levy) Bill 2014.
- On 25 June 2014, the ATO issued an Addendum to Superannuation Guarantee Determination SGD 2005/2A2 to reflect the addition of the ATO as an "approved clearing house" under regulation 7AE of the Superannuation Guarantee (Administration) Regulations 1993 (Cth).
- On 25 June 2014, the ATO announced that it would withdraw SMSF Determination 2010/1 which sets out three conditions which have to be satisfied by a trustee of an SMSF before it can purchase a trauma insurance policy in respect of a member of the fund. The ATO Release explains that from 1 July 2014 an SMSF that provides a trauma insurance benefit in relation to a member will generally be in breach of regulation 4.07D of the Superannuation Industry (Supervision) Regulations 1994 because the events covered by a trauma insurance benefit are not consistent with the conditions of release of a member's superannuation benefits. However, the regulation will not apply to the continued provision of insured benefits to members who joined a fund before 1 July 2014 and were covered in respect of that insured benefit before 1 July 2014.
- On 26 June 2014, ASIC Class Order [CO 14/509] was registered. The purpose of the class order is to clarify the requirement under section 29QB of the Superannuation Industry (Supervision) Act 1993 (Cth) that superannuation websites must be kept up to date at all times. It establishes a safe harbour for RSE licensees that update their website within the time frames prescribed.
- On 30 June 2014, the Corporations Amendment (Streamlining Future of Financial Advice) Regulation 2014 was registered. The Regulation gives effect to the Government's proposed amendments to the FoFA legislation by effecting "interim changes" which are time-sensitive until such time as the measures contained in the Corporations Amendment (Streamlining of Future of Financial Advice) Bill 2014 can be passed through Parliament.
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.