Superannuation Alert 31.03.17
Financial Services eBulletin - 31 March 2017
The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
|Legislative updates||Registration of superannuation budget reform regulations||Treasury Laws Amendment (Fair and Sustainable Superannuation) Regulations 2017||
On 27 March 2017, the Treasury Laws Amendment (Fair and Sustainable Superannuation) Regulations 2017 were registered on the Federal Register of Legislation. The purpose of the regulations are to facilitate the Federal Government's reforms to superannuation that commence from 1 July 2017.
According to the regulations' explanatory statement, the primary schedule amends the Corporations Regulations 2001, Retirement Savings Accounts Regulations 1997 and the Superannuation Industry (Supervision) Regulations 1994 to "to make consequential changes to support the introduction of the transfer balance cap measure in the superannuation reform package."
|Legislative updates||Release of draft superannuation income stream regulations||Treasury Laws Amendment (Innovative Superannuation Income Streams) Regulations 2017||
On 21 March 2017, the Hon Kelly O'Dwyer MP released a draft set of regulations and accompanying explanatory statement concerning superannuation income stream products. The regulations implement the Federal Government's plan announced as part of the 16/17 Federal Budget to allow funds to offer new retirement income products, including deferred products, investment-linked pensions, and annuities and group self-annuitised products, which would otherwise be restricted under the current pension rules in the Superannuation Industry (Supervision) Regulations 1994.
The explanatory statement for the regulations provides that superannuation funds will receive tax exemptions on income from assets supporting the new income stream products provided they are currently payable, or in the case of deferred products, held for an individual that has reached retirement.
|ASIC||Update of RG175||Regulatory Guide 175||
On 22 March 2017, ASIC updated Regulatory Guide 175 to provide guidance on conduct and disclosure obligations for financial product advisers. ASIC's media release foreshadowing the amendments, states that the changes have been made "to reflect regulatory and legislative changes, including revisions to the Future of Financial Advice (FOFA) reforms."
|ATO||Updates to budget reform Law Companion Guidelines||LCGs||
In the last fortnight, the ATO has updated several Law Companion Guidelines to assist in interpreting upcoming superannuation changes.
LCG 2016/8 - Superannuation reform: transfer balance cap and transition-to-retirement reforms: transitional CGT relief for superannuation funds - provides guidance on capital gains tax (CGT) relief available for superannuation funds as a consequence of transfer balance cap and transition-to-retirement reforms beginning next financial year.
LCG 2016/9 - Superannuation reform: transfer balance cap - explains how the transfer balance cap operates for account-based superannuation income stream products.
LCG 2016/11 - Superannuation reform: Concessional Contributions - Defined benefit interests and constitutionally protected funds - clarifies how the adjustments to the calculation of concessional contributions and excess concessional contributions apply to contributions and amounts allocated by superannuation providers for future financial years.
LCG 2016/12 - Superannuation reform: Total superannuation balance - outlines how an individual's "total superannuation balance" will be calculated from next financial year.
|APRA||No relevant items this week.|
|Case law update||No relevant items this week.|
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