In the media
APRA powerless against contraventions of superannuation
law
The Australian Prudential Regulation Authority has been
powerless in enforcing honest behaviour by superannuation funds
because it does not have the legislative muscle to enforce it, the
financial services Royal Commission has heard ( 30 November 2018).
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Removal of volume-based adviser fees will test super
funds
Intrafund advice will likely fall short of what people
need to plan for their retirement and this situation may be made
more problematic if a future government outlaws volume-based fees,
according to actuarial research house, Rice Warner. The Government
would require trustees to provide guidance (which may or may not be
financial advice) (22 November 2018).
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Consultation on draft proposals for reform of the early
release of superannuation rules
The Government has publicly released a consultation paper
on changes to the rules governing the early release of
superannuation benefits on compassionate grounds and financial
hardship grounds. The draft proposals are informed by the findings
from the first round of consultation on changes to the early
release of superannuation rules (21 November 2018).
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Improving visibility of superannuation assets in family
law proceedings
Women will get a better deal in accessing superannuation
assets at the end of a relationship as a consequence of a new
information-sharing initiative announced as part of the Coalition
Government's Women's Economic Security Package. The
electronic information-sharing system will commence on 1 July 2020
(21 November 2018).
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In practice and courts
Productivity Commission: Economies of scale
New modelling by the Productivity Commission has found
evidence of economies of scale in the super system, pointing to
annual savings of at least $1.8 billion if mergers were to go ahead
between the 50 highest cost funds and the 10 lowest cost funds. A
supplementary paper,
Economies of Scale, released as part of the Commission's
ongoing review of the efficiency of super, concluded that larger
scale was strongly associated with lower (average) expenses across
the super system notably in administration (29 November 2018).
AIST: ATO update on 2019 deadlines
The ATO has confirmed the following key super deadlines
for 2019. The deadlines are: SuperStream to be used for SMSF
rollovers from 30 November 2019; Event-based reporting
(MATS/MAAS) to be completed by April 2019; Last
annual Member Contribution Statement on 31 October 2019; The ATO
has also confirmed that new reporting arrangements will allow
members to see up-to-date account information for all their funds
on myGov, as well as information about the SG paid by their
employer (November 2018).
AIST Policy News - 29 November 2018
Royal Commission update; Productivity Commission finds
economies of scale; Uncertainty on super measures before
Parliament; Profit-to-member sector grows to $1.3 trillion on fund
inflows; ATO calls on funds to act on unpaid super; Consultation on
the early release of super; New financial literacy body.
More...
APRA superannuation statistics September 2018
APRA releases superannuation statistics for September 2018
on 27 November 2018.
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Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Industry: interim
report
Note: This report covers policy related issues
arising from the first four rounds of hearings. Additional topics,
including superannuation and insurance, will be covered in the
final report due by 1 February 2019.
ASIC Consultation Reminder: Organisational competence
requirements for advice licensees: Update to RG 105 (CP 305)
The proposals in
Consultation Paper 305 are based on the existing draft guidance
published by the Financial Adviser Standards and Ethics Authority
(FASEA). Submissions for CP 305 are due by 6
December 2018, with an updated RG 105 setting out the new
organisational competence requirements for advice licensees
expected to be released in early 2019.
More...
Cases
Macras v Nulis Nominees (Australia) Limited
[2018] FCA 1867
ADMINISTRATIVE LAW –appeal from a decision of the
Superannuation Complaints Tribunal – scope of jurisdiction
under s 46(1) of the Superannuation
(Resolution of Complaints) Act
1993 (Cth) – where trustee held
insurance policy on behalf of applicant – where policy had
exclusion for non-disclosed pre-existing conditions – where
insurer sought access to further medical information before
determining applicant's entitlement under the policy –
where trustee decided not to make payment to applicant until
insurer determined applicant's entitlement – where
Tribunal found decisions were "fair and reasonable in the
circumstances" – where insurer had the right under the
policy to ask for further information – where open to
Tribunal to find there was evidence to support insurer's
position that it needed further information – scope of
matters relevant to Tribunal's assessment of fairness and
reasonableness – no error of law disclosed in Tribunal's
reasons. Superannuation (Resolution of
Complaints) Act 1993
(Cth).
Legislation
Commonwealth
Treasury Laws Amendment (Strengthening Corporate and
Financial Sector Penalties) Bill 2018
House of Representatives Third reading agreed to
29/11/2018 - Implements certain recommendations of the ASIC
Enforcement Review Taskforce by amending the Corporations Act
2001, Australian Securities and Investments Commission Act
2001, National Consumer Credit Protection Act 2009
and Insurance Contracts Act 1984 to: introduce a stronger
penalty framework for corporate and financial sector misconduct;
and make miscellaneous technical and consequential amendments.
Regulations
Accounting
Standard AASB 2018-5 Amendments to Australian Accounting Standards
– Deferral of AASB 1059
27/11/2018 - This standard amends the mandatory effective
date of Accounting Standard AASB 1059 Service Concession
Arrangements: Grantors so that AASB 1059 is required to be applied
for annual reporting periods beginning on or after 1 January 2020
instead of 1 January 2019.
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.
