Superannuation Alert - 5.12.12

Financial Services eBulletin - 5 December 2012

The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry and is in addition to our Superannuation Update, which analyses the main developments of interest in more detail.

 

  • On 28 November 2012, the following Bills received Royal Assent:
  • On 29 November 2012, the Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Bill 2012 was referred to the Parliamentary Joint Committee on Corporations and Financial Services. According to the Explanatory Memorandum, this Bill is the fourth tranche of legislation implementing the Government’s MySuper and governance reforms as part of Stronger Super. The Bill amends the SIS Act to over-ride any provisions in a fund’s governing rules that require the trustee to use a specified service provider, investment entity or financial product, to provide APRA with the power to issue infringement notices for certain breaches of the Act and to require superannuation trustees to provide reasons for decisions made in relation to a complaint. This Bill will also require persons who have suffered loss or damage due to a director’s contravention of duties under the SIS Act to seek leave from the court before bringing action against directors. The Bill also ensures that directors of corporate trustees (and individual trustees) are only prohibited from voting on any company business in limited circumstances, including where a conflict of interest arises.
    • Unlawful payments from regulated superannuation funds - provides for civil and criminal penalties for the promotion of illegal early release schemes under which a payment might be made from a regulated superannuation funds otherwise than in accordance with the SIS Act.
    • Unlawful payments from regulated superannuation funds (income tax rates amendment) - provides that from the 2013-14 income year onwards, individuals who gain illegal early access to their superannuation benefits will be subject to the superannuation fund non-complying tax rate of 45% instead of the individual's marginal rate.
    • Roll-overs to self-managed superannuation funds (SMSF) - provides that roll-overs from a non-SMSF to an SMSF will be included as a new designated service under the AML/CTF Act. The effect of the proposed change will be to require the transferring superannuation fund from 1 July 2013 to comply with a range of obligations under the AML/CTF Act, including customer identification and verification of identity, on-going customer due diligence, reporting, record-keeping, and establishing and maintaining an AML/CTF program. 

 

  • On 4 December 2012, the Fair Work Amendment Bill 2012 received Royal Assent. According to the Explanatory Memorandum, the Bill introduces new requirements in relation to modern award terms about default superannuation, and provide for the establishment of an Expert Panel to assess default superannuation funds. 
  • On 4 December 2012, the Treasury Legislation Amendment (Unclaimed Money and Other Measures) Bill 2012 received Royal Assent. The Bill makes amendments to various Acts to bring forward the time at which money is recognised under the relevant law as lost or unclaimed. According to the Revised Explanatory Memorandum, the Bill was amended to provide transitional arrangements for superannuation funds, so that they will now have until 31 May 2013 to report on and transfer lost accounts and other lost moneys to ASIC or the ATO. According to a media release issued by the Parliamentary Secretary to the Treasurer on 26 November 2012, the Government will introduce regulations to avoid capturing accounts unintentionally.

 

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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