Superannuation Alert - 27.08.14
Financial Services eBulletin - 27 August 2014
The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
- On 21 August 2014, APRA released its June 2014 Quarterly Superannuation Performance Statistics (interim edition). The report "provides industry aggregate summaries of financial performance, financial position and key ratios". According to the report:
- superannuation assets totalled $1.85 trillion at the end of the June 2014 quarter;
- there was an increase of 2.6% of total superannuation assets over the June 2014 quarter and a 15.3% increase in total superannuation assets over the 12 months to June 2014;
- total contributions for the year ending 30 June 2014 were $95 billion;
- net contribution flows totalled $12.4 billion in the June 2014 quarter (an increase of 15.1% from the June 2013 quarter) and were $37.3 billion for the year ending 30 June 2014; and
- the annual industry-wide rate of return for entities with over $50 million in assets for the year ending 30 June 2014 was 11.6%.
- On 22 August 2014, the ATO issued interpretative decision ATO ID 2014/27 - Superannuation contributions tax - contributions and surcharge liability. The decision deals with the question of whether payments made by a member to their unfunded defined benefits provider in respect of surcharge payable under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 (SCTA) should be regarded as contributions made to obtain superannuation benefits. According to the decision, member payments made to the provider under s 16(7) of the SCTA for the purpose of reducing the amount by which the member's surcharge debt account is in debit and are not contributions made by the member to the provider for the purpose of obtaining superannuation benefits.
- On 26 August 2014, Federal Parliament resumed for its 2014 Spring Sittings. The draft agenda for the House of Representatives lists for further debate the Corporations Amendment (Streamlining of Future of Financial Advice) Bill 2014 on 27 August 2014. This Bill proposes changes to the Future of Financial Advice (FoFA) laws including the removal of the 'catch all' provision from the steps an advice provider may take in order to satisfy best interests obligations.
- On 26 August 2014, the Superannuation Laws Amendment (2014 Measures No 1) Regulation 2014 was registered. The regulation contains amendments to the Superannuation Industry (Supervision) Regulations 1994. The Explanatory Statement to the regulation provides that the amendments include the following:
- replacement of member verification requirements where a member of a regulated superannuation fund asks the trustee to rollover or transfer an amount to a self managed superannuation fund;
- correction of an error in the application of the investment choice exception to the standard timeframe for a rollover or transfer of an amount of superannuation;
- removal of the requirement that a payment reference number be unique to the contribution; and
- New Zealand statutory declarations can now be used as evidence that an individual has permanently migrated to New Zealand for the purposes of a payment from an Australian superannuation fund to a New Zealand KiwiSaver 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.