In the media
Super fund growth dips in September
MEDIA – 30 October 2014 – Super fund growth fell by
0.6% in September, bringing the median growth for the 2014/2015
financial year down to 1.6%, according to SuperRatings. Australian
superannuation fund's "large weighting to Australian
shares" was the biggest driver of the fall for super funds,
with the "median Australian shares option falling 4.3%"
in September.
More...
Unlisted investments open to fraud –
APRA
MEDIA – 29 October 2014 – Unlisted and opaque
investments undertaken by superannuation funds have been listed by
the Australian Prudential Regulation Authority
(APRA) as being characteristic of being open to
fraud.
More...
ASIC eyes post FOFA civil actions
MEDIA – 29 October 2014 – The corporate regulator is
preparing to take advantage of new enforcement options opened up by
the Future of Financial Advice reforms.
More...
APRA releases group insurance best practice
guide
MEDIA – 30 October 2014 – APRA has released the final
prudential practice guidelines providing guidance on good practices
for insurers in relation to group insurance arrangements. On the
tender process, it provides guidance on claims philosophy,
sustainability, service agreements, outsourcing, monitoring the RSE
licensee and other relationships, and responding to a tender. More...
Cost of handling super complaints
declines
MEDIA – 28 October 2014 – While some other fees and
charges have continued to rise across the superannuation industry,
the average cost of dealing with complaints actually decreased last
financial year, according to the Superannuation Complaints Tribunal
(SCT).
More...
Release findings on all super fees, says
AIST
MEDIA – 27 October 2014 – APRA needs to disclose the
fees of all default superannuation funds and not focus solely on
those paid in MySuper products, argues the Australian Institute of
Superannuation Trustees (AIST).
More...
An enhanced public register of financial
advisers
GOVERNMENT – 24 October 2014 – The Government
announces it is delivering on commitment to establish an enhanced
industry-wide public register of financial advisers. This register
of financial advisers will enable investors, employers and ASIC to
verify the credentials of financial advisers and be confident that
they are appropriately qualified and experienced.
More...
Government response to Senate inquiry into the
performance of ASIC
GOVERNMENT – 24 October 2014 – The Government has
considered all of the 61 recommendations made by the Senate
Economics Committee inquiry into the performance of the ASIC and
today released its response to those recommendations. Specifically,
ASIC has agreed to establish an Office of the Whistleblower within
ASIC to improve the way it deals with whistleblowers.
More...
Employers: Remember to pay the new super guarantee
rate
MEDIA – 23 October 2014 – Ahead of the first quarterly
payment under the new rate, the ATO is reminding employers of the
increase to the compulsory minimum super payments they make on
behalf of eligible employees.
More...
APRA urged to shed light on fees charged by non-MySuper
default funds
MEDIA – 23 October 2014 – Australian Institute of
Superannuation Trustees (AIST) today called on
APRA to prioritize disclosure of all fees paid on default
superannuation accounts, not just those paid on MySuper products.
More...
ASIC lays out 2014/2015 strategy
MEDIA – 21 October 2014 – The corporate regulator has
pointed to a number of "key risks" in its 2014/2015
strategic outlook that will drive its activities over the next 12
months. Structural changes in the financial system through the
increase in assets held in superannuation (including SMSFs) are
magnifying the risk of poor advice.
More...
Industry super funds performance reinforces case for
strong default safety net
INDUSTRY SUPER AUSTRALIA – 21 October 2014 –
Commission-free industry super funds again outperformed retail
super funds on average over all time periods, according to monthly
data from SuperRatings, based on balanced fund median rolling
returns to 30 September 2014.
More...
SuperRatings: latest returns
SUPERRATINGS – 30 October 2014 – The following chart
and table shows the performance of key SuperRatings' investment
options. More...
AUSTRAC's proposed changes to the annual compliance
report – industry consultation
GOVERNMENT – 30 October 2014 – The consultation has
been extended for four weeks until Friday, 28 November 2014.
More...
APRA Prudential Practice Guide LPG 270 Group Insurance
Arrangements (LPG 270)
APRA – 30 October 2014 – Topics covered in LPG 270
include the identification of risks in accordance with an
insurer's risk management framework, responding to tenders and
data management. LPG 270 also discusses the implications of
Prudential Standard SPS 250 Insurance in Superannuation for
insurers.
More...
APRA Draft Prudential Practice Guide SPG 223 Fraud Risk
Management (SPG 223)
APRA – 27 October 2014 – This outlines prudent
practices in relation to the management of fraud risk, and focuses
on current and emerging fraud risk factors impacting the
superannuation industry from both an internal and external
perspective. Draft SPG 223 substantially updates and expands upon
APRA's existing fraud risk guidance. Submissions on draft SPG
223 by Monday 19 January 2015.
More...
APRA new and amended FAQ on superannuation reporting
standards
APRA has released one new and one amended FAQ on superannuation
reporting standards (23 October 2014).
More...
ASFA submissions – 21 October 2014
Submission to ASIC: Draft Class Order – Disclosure of fees for superannuation trustees and managed investment scheme responsible entities.
Submission to Treasury: Tax and Superannuation Laws Amendment (2014 Measures No. 7) Bill 2014: Providing certainty for superannuation fund mergers.
Submission to Treasury: Capital Gains Tax Exemption for Compensation and Insurance.
ATO: Remember to pay the new super guarantee
rate
The super guarantee rate increased from 9.25% to 9.5% as of 1 July
this year. Small businesses are encouraged to use the ATO's
free
Small Business Superannuation Clearing House service to help
meet their super guarantee obligations. The Small Business
Superannuation Clearing House lets you pay your superannuation
contributions in one transaction, to a single location; helping to
make the process easier (23 October 2014).
Cases
Munday v Commonwealth of Australia (No 2)
[2014] FCA 1123
HUMAN RIGHTS – Discrimination – disability –
discrimination alleged in conduct of Commonwealth program regarding
early release of superannuation on compassionate grounds –
early release of superannuation sought by second applicant to pay
for in-vitro fertilisation (IVF) treatment
overseas on the basis that it was necessary to alleviate acute or
chronic depression – IVF treatment would involve paying for
ova – first application rejected because decision-maker was
not satisfied that IVF was necessary to alleviate second
applicant's depression or that she lacked the financial
capacity to meet the expense arising from the proposed treatment by
other means – second application rejected because
decision-maker was not satisfied that IVF was necessary to
alleviate second applicant's depression and also because
superannuation funds would be used for a purpose that was not
permitted under Australian law – requirement of lawful
purpose not specified inSuperannuation Industry (Supervision)
Act 1993 (Cth) or Superannuation Industry (Supervision)
Regulations 1994 (Cth) – whether imposition of this
requirement involved unlawful discrimination on the basis of second
applicant's disability (infertility) – whether failure to
obtain independent legal advice before imposing this requirement
involved a failure to make a reasonable adjustment –
Disability Discrimination Act 1992 (Cth), ss 5 and 6. More...
Wilson and Commonwealth Superannuation
Corporation [2014] AATA 795
DEFENCE – Defence Force Retirement and Death Benefits
– applicant retired from army – whether applicant
should have been retired on medical grounds due to posttraumatic
stress disorder – insufficient evidence to show applicant
suffering posttraumatic stress disorder on discharge –
decision under review affirmed Defence Force Retirement and
Death Benefits Act 1973 (Cth) ss 26, 30, 37, 99(4). More...
Legislation
Commonwealth
Anti-Money laundering and Counter-Terrorism Financing
Act 2006 (Act 169/2006)
Proposed amendment by Freedom of Information Amendment (New
Arrangements) Bill 2014 and Counter-Terrorism Legislation Amendment
(Foreign Fighters) Bill 2014.
Counter-Terrorism Legislation Amendment Bill (No. 1)
2014
29/10/14 302R1013 – Attorney-General George Brandis second
reading speech introducing the legislation.
More...
The Treasury Legislation Amendment (Repeal Day) Bill
2014 implements a range of improvements to Australia's laws and
removes costly and unnecessary red tape
Schedule 1 amends the Superannuation Industry (Supervision)
Act 1993 to repeal the payslip reporting provisions. Under the
Fair Work Act, employers are already required to report details of
employee superannuation entitlements that accrued during a
particular pay period on an employee's payslip. Repealing the
payslip reporting provisions will save employers from investing in
major upgrades in their payment system software with minimal
benefit to their employees. Schedule 2 simplifies taxation laws by
consolidating duplicated provisions from various taxation Acts into
a single set of provisions, repealing spent or redundant taxation
laws, and moving longstanding regulations into the primary law.
More...
The Commonwealth Government "Spring Repeal
Day" on 29 October 2014
The Federal Government will introduce changes as part of the
second phase of its red tape reduction strategy, aimed at cutting
regulation by $1 billion a year. The bills are to be debated on
"Repeal Day", 29 October 2014. Changes include:
Company directors will no longer have to hold a general meeting on the request of at least 100 voting members under draft laws about to go to parliament. The requirement will be replaced with a threshold shareholding of 5% of voting shares changes to corporations laws will also remove the obligation for companies limited by guarantee with revenue of less than $1 million to appoint an auditor. (21 October 2014)
The Corporations Legislation Amendment (Deregulatory and Other Measures) Bill 2014 removes unnecessary regulation, clarifies existing regulatory obligations and enhances the efficient operation of certain Government bodies by:
exempting certain companies limited by guarantee from the need to appoint or retain an auditor
clarifying the circumstances in which a financial year may be less than 12 months.
The measures contained in the Corporations Legislation Amendment (Deregulatory and Other Measures) Bill 2014 are estimated to reduce business compliance costs by around $14 million per year. The Treasury portfolio will continue to deliver on initiatives which increase productivity by removing unnecessary duplication in regulatory arrangements. (22 October 2014). More...
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