Superannuation Alert 9 July 2014
Financial Services eBulletin - 9 July 2014
The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
- The Treasury Legislation and Other Acts Amendment Act 2014 (Vic) received assent on 27 June 2014. Amongst other things, it amends the Emergency Services Superannuation Act 1986 (Vic) to require the Emergency Services Superannuation Board to comply with the prudential standards made by the Governor in Council and amends the Parliamentary Salaries and Superannuation Act 1968 (Vic) and the State Superannuation Act 1988 (Vic) to allow former members of certain public sector superannuation funds to commute a pension to meet a Commonwealth taxation liability.
- On 30 June 2014 APRA released Insight (Issue 1, 2014). It includes articles providing overviews of the financial position and performance of the superannuation industry over 2012/13, of the implementation and authorisation process for MySuper products, and of APRA's expectations for due diligence to be performed on investment managers by APRA-regulated superannuation entities with a special focus on the need for, and importance of, operational due diligence.
- On 30 June 2014 the ATO registered the RSA Data and Payment Standards (Contribution Transitional Arrangements) Amendment 2014. The Standard applies to employers and RSA providers required to comply with the requirements of the RSA Data and Payment Standards 2013 in relation to contributions. According to the Explanatory Statement it amends the existing contribution transitional arrangements by extending the existing contribution transition-in period by 12 months to 30 June 2017 and provides that an entity voluntarily taking part in a contribution induction process may send or receive contribution transaction messages and associated payments during that process in a manner advised by the ATO.
- On 1 July 2014 the provisions contained in Parts 2 and 5 to 8 of the Superannuation Legislation Amendment Act 2013 (Vic) came into effect by forced commencement, having not been proclaimed at an earlier date. Those provisions make various amendments to the Emergency Services Superannuation Act 1986 (Vic), as well as amendments to the State Superannuation Act 1988 (Vic), the Transport Superannuation Act 1988 (Vic) and the State Employees Retirement Benefits Act 1979 (Vic).
- On 1 July 2014 ASIC Class Order [CO 14/592] was registered. It amends Class Order [CO 14/509], which was registered on 26 June 2014. CO 14/509 established a safe harbour for RSE Licensees to update their website within prescribed time frames to comply with the requirements under section 29QB of the Superannuation Industry (Supervision) Act 1993 (Cth). Section 29QB requires that superannuation websites must be kept up to date at all times with certain prescribed information. The amendments in Class Order [CO 14/592] provide that:
- information required under paragraphs 2.38(2)(j) and (k) of the Superannuation Industry (Supervision) Regulations 1994 be provided in relation to the financial year of the relevant RSE licensee rather than the financial year of the registrable superannuation entity;
- information required under paragraphs 2.38(2)(a), (b), (d), (e), and (h) may be redacted to exclude personal information of fund beneficiaries and former beneficiaries; and
- the start date for certain disclosures required under section 29QB(1) of the Act is deferred until 1 July 2015 for standard employer-sponsored sub-plans.
- On 2 July 2014 the Superannuation Supervisory Levy Imposition Determination 2014 was registered on the Federal Register of Legislative Instruments. It provides for the amounts payable by superannuation entities in respect of the levy imposed by the Superannuation Supervisory Levy Imposition Act 1998 (Cth) for the 2014-15 financial year.
- On 3 July 2014 the Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2014 was registered to commence from 1 July 2014. It provides for the amount of the levy money payable to the Commonwealth in respect of levy for the 2014-2015 financial year to cover the costs to the Commonwealth of providing market integrity and consumer protection functions for prudentially regulated institutions, making determinations about the release on compassionate grounds of superannuation benefits and implementing the SuperStream measures. The determination also specifies the proportion of amounts of levy money paid to APRA that is to be credited to the APRA Special Account.
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.