Superannuation Alert - 17.9.14
Financial Services eBulletin - 17 September 2014
Lander & Rogers' Superannuation Alert is a brief overview of new developments in the superannuation industry.
- On 4 September, an inquiry into the Scrutiny of Financial Advice was referred to the Senate Economics References Committee for inquiry and report. The inquiry's terms of reference are to consider the implications of financial advice reforms, particularly in relation to misconduct and unethical or misleading financial advice. Considerations will include the current level of consumer protections, the role of regulatory agencies, the response by financial services providers and companies, and relevant compensation or transparency mechanisms. Submissions are due by 5 December 2014.
- On 6 September, the ComSuper Regulation 2014 (Cth) commenced. The regulation was made under the authority of the ComSuper Act 2011 (Cth) and its purpose is to cease the ComSuper CEO's function of providing administrative services to the Commonwealth Superannuation Corporation with respect to the Public Sector Superannuation Accumulation Plan at the end of 3 December 2014.
- On 8 September, the Corporations Amendment (Statements of Advice) Regulation 2014 (Cth) was registered. The regulation makes a number of amendments to financial disclosure requirements provisions in the Corporations Regulations 2001 (Cth) regarding the Statement of Advice. The amendments include, among other things, introducing requirements for the adviser and the client to sign the Statement of Advice, as well as any instructions from the client requesting further or varied advice. Further amendments will also require that advisers include statements and information in the Statement of Advice regarding clients' rights and their adviser's obligations under the Corporations Act 2001 (Cth). The regulation commences on 1 January 2015.
- On 8 September, APRA issued the following 12 new FAQs on superannuation reporting forms.
Defined benefit reporting
- FAQ 105: When reporting minimum benefits in item 1.3 of Reporting Form SRF 160.0 Defined Benefit Matters (SRF 160.0), can the item be left blank where an RSE licensee does not currently have this information available?
- FAQ 106: In APRA's reporting collection, what is the difference between accrued benefits (ref: item 1.1 of Reporting Form SRF 160.0 Defined Benefit Matters (SRF 160.0)) and defined benefit members' benefits (widely used in the reporting collection)?
- FAQ 107: When reporting detailed member segmentation on Reporting Form SRF 160.0 Defined Benefit Matters (SRF 160.0), Reporting Form SRF 610.0 Membership Profile (SRF 610.0) and Reporting Form SRF 610.1 Changes in Membership Profile (SRF 610.1), how should the segmented information be calculated for defined benefit members in the period prior to an RSE licensee adopting Australian Accounting Standards Board Standard AASB 1056 Superannuation Entities (AASB 1056) for the purpose of preparing its RSE-level financial statements?
- FAQ 108: When reporting detailed member segmentation on Reporting Form SRF 160.0 Defined Benefit Matters (SRF 160.0), Reporting Form SRF 610.0 Membership Profile (SRF 610.0) and Reporting Form SRF 610.2 Membership Profile (SRF 610.2), how should liabilities be reported when they do not relate to specific members or are impractical to allocate to specific members?
- FAQ 109: Who is required to complete Reporting Form SRF 161.0 Self-Insurance (SRF 161.0)?
- FAQ 110: How should item 1.3 of Reporting Form SRF 161.0 Self-Insurance (SRF 161.0) be completed, where a self-insurance arrangement is funded solely through self-insurance reserves?
- FAQ 111: Should income protection insurance claims that are in the course of payment at the reporting date, but subject to regular reassessment, be reported in item 2 or item 3 of Reporting Form SRF 161.0 Self-Insurance (SRF 161.0)?
- FAQ 112: How should item 4.2 of Reporting Form SRF 161.0 Self-Insurance (SRF 161.0) be completed, where reinsurance premium payments are made solely from the RSE's self-insurance reserves?
- FAQ 114: In Reporting Form SRF 330.1 Statement of Financial Performance (SRF 330.1) and Reporting Form SRF 330.2 Statement of Financial Performance (SRF 330.2), are "members' benefit flows in" to be reported as net or gross of contribution tax?
- FAQ 115: Must RSE-level investment income, unrealised gains/losses and realised gains/losses reported on Reporting Form SRF 330.0 Statement of Financial Performance (SRF 330.0) reconcile to investment flows information reported on Reporting Form SRF 530.1 Investments and Investment Flows, Reporting Form 531.0 Investment Flows and Reporting Form 534.0 Derivative Financial Instruments?
- FAQ 116: Must MySuper product-level investment income, unrealised gains/losses and realised gains/losses reported on Reporting Form SRF 330.2 Statement of Financial Performance (SRF 330.2) reconcile to investment flows information reported on Reporting Form SRF 533.0 Asset Allocation?
- FAQ 113: Should an RSE licensee that is winding up an RSE refer to Reporting Standard SRS 602 Wind Up or APRA Superannuation Circular No III.A.6 Winding-up a superannuation fund paragraph 14?
- On 8 September, the ATO released its Decision Impact Statement in relation to the case of Dowling v FC of T 2014 ATC 10-371. The case involved a taxpayer who was unsuccessful in seeking the exercise of the Commissioner's discretion under s 292-465 of the Income Tax Assessment Act 1997 (Cth) to disregard or re-allocate to another financial year all or part of her excess non-concessional contributions to super in the 2010-11 financial year. According to the ATO, the approach in this case is consistent with the principles stated by the Federal Court in Liwszyc v FCT  FCA 112 in relation to applying that discretion.
- On 8 September, The ATO released SuperUpdate September 2014. The topics covered by this release include, among others, changes to the superannuation excess concessional contributions cap, changes to the Departing Australia Superannuation Payment withholding tax rates, how a superannuation fund member may pay a Division 293 tax assessment, and lodging lost members statements.
- On 11 September, the Social Services and Other Legislation Amendment (Seniors Health Card and Other Measures) Bill 2014 (Cth) received Royal Assent. The Bill provides for the taxable income thresholds in relation to the Commonwealth Seniors Health Card to be annually indexed based on movements in the Consumer Price Index, starting on 20 September 2014.
- On 11 September, AUSTRAC released Terrorism financing in Australia 2014. AUSTRAC's production of the report is intended to raise awareness of the risks of, and thereby strengthen Australia's defences against, terrorism. The report provides an overview of the terrorism financing environment in Australia including risks, indicators of suspicious activity and the legal framework in place to deter terrorism financing.
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