In the media
Outdated default super needs overhaul
MEDIA - 12 May 2017 - Australia's default superannuation
framework was built on "outdated" barriers that have
stifled competition among the nation's super providers and
dismantling those barriers would serve consumers' best
interests, according to the Financial Services Council
(FSC).
More...
Associations react to housing affordability
measure
MEDIA - 10 May 2017 - The FPA, AFA and SMSF Association have
responded to measures in the federal budget that would allow first
home buyers to access their superannuation.
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New dispute resolution body outlined
MEDIA – 09 May 2017 – The government has announced the
creation of a new external dispute resolution body designed to give
Australians a "simpler, more accessible" way to resolve
disputes with banks, super funds and other financial institutions.
The Australian Financial Complaints Authority
(AFCA) is intended to improve competition and
accountability among financial institutions.
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APRA announces appointment of senior
executives
APRA – 10 May 2017 - The Australian Prudential Regulation
Authority (APRA) has announced the appointment of
four new senior executives to its leadership team, as part of a
broader organisational restructure designed to equip APRA to
continue to respond to changes in the financial sector.
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Govt avoids using SG for property
MEDIA - 10 May 2017 - The federal government has stopped short of
allowing first home buyers to use compulsory super savings for a
property deposit, but has introduced a series of incentives to make
saving for a home easier.
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Major Bank Levy a Poor Policy Precedent
AFMA – 10 May 2017 - The Australian Financial Markets
Association has expressed concern regarding the cornerstone budget
announcement of the Government to impose a Major Bank Levy, with
projected revenue over the forward estimates period of $6.2
billion. The announced levy applies to Australia's five largest
banks, with liabilities in excess of $100 billion.
More...
Treasury meeting on bank tax raises more questions than
answers
ABA - 11 May 2017 - The CEO of the Australian Bankers'
Association Ms Anna Bligh has warned that the Federal
Government's new $6.2 billion bank tax is fraught with even
more uncertainty after Treasury officials were unable to answer key
questions at a briefing with banks.
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New major bank tax bad for jobs and economic
growth
ABA - 9 May 2017 - A new tax on major banks in the Federal Budget
is a tax on the economy, according to the Australian Bankers'
Association Chief Executive Anna Bligh.
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Building an accountable and competitive banking
system
TREASURY – 09 May 2017 - The Turnbull Government is
announcing an overhaul of the financial system and bringing forward
a comprehensive package of reforms to strengthen accountability and
competition. The Government will legislate for a new Banking
Executive Accountability Regime that will ensure banks and their
executives are held accountable when they fail to meet
expectations.
More...
A levy here, a levy there – FPA responds to mixed
Budget
FPA – 09 May 2017 - The Financial Planning Association of
Australia (FPA) welcomed measures to encourage
older property owners to downsize in the Federal Budget, but cited
concerns with increased complexity to the superannuation system. More...
Minimising complexity essential for super success:
ASFA
ASFA – 09 May 2017 - The Association of Superannuation Funds
of Australia (ASFA) said while not as substantial
as the landmark reforms in last year's Budget, the package of
superannuation-related measures announced by the government will
nonetheless have a wide-ranging impact.
More...
Banks stay mum on unpaid super
MEDIA - 08 May 2017 - Industry Super Australia
(ISA) has criticised Australia's major banks
over their lack of action on the issue of unpaid super following
the results of this week's Senate inquiry.
More...
Inquiry into the state of competition in the financial
system
TREASURY - 8 May 2017 - The Government is committed to ensuring
that Australia's financial system is competitive and
innovative, tasking the Productivity Commission to hold an inquiry
into competition in Australia's financial system.
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KPMG flags licensee supervision risks
MEDIA – 08 May 2017 - ASIC's finding that many licensee
audits are inadequate means licensees need to find better ways to
monitor and supervise their authorised representatives, says KPMG.
More...
ASIC stifling fee reductions: Rice Warner
MEDIA – 05 May 2017 - ASIC's recent introduction of
Regulatory Guide 97, Disclosing fees and costs in PDSs and
periodic statements, is likely to stifle the downward trend in
superannuation fund headline fees, according to Rice Warner.
More...
Death benefit distribution top SCT
grievance
MEDIA - 03 May 2017 - The Superannuation Complaints Tribunal
(SCT) has introduced a new pilot program to deal
with death benefit complaints, which made up the largest proportion
of disputes at the tribunal in the first quarter of 2017.
More...
Senate inquiry points to SG concerns
MEDIA - 04 May 2017 - The Senate Economics Committee has said it
is "deeply concerned" about the extent to which employers
are failing to pay super guarantee (SG)
contributions, with the final report from its inquiry into SG
non-payment making 32 recommendations intended to address the
issue.
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AIST supports Senate Committee
recommendations
MEDIA – 04 May 2017 - The Australian Institute of
Superannuation Trustees (AIST) has welcomed the
Senate Committee report recommendations on changes to current super
legislation, notably the removal of the $450 threshold and the
changes to unpaid super.
More...
Review needed on CIPR advice requirements
MEDIA – 04 May 2017 - The Government needs to urgently
review their proposed super policies as they are an issue for both
higher net worth Aussies and middle Australians, Chartered
Accountants believe. Requirements for scaled and intra-fund advice
need to be reviewed to determine whether modification of further
guidance is needed to facilitate the provision of comprehensive
income products in retirement (CIPRs), according
to a committee.
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FSC: PC interim submission
FSC – 03 May 2017 - The Productivity Commission's (PC)
interim report is an important step towards introducing genuine
competition in the default superannuation market. The Financial
Services Council (FSC) recognises the principle
that competition policy is in the best interests of consumers is at
the core of each of the four models proposed by the Commission.
More...
In practice and courts
ARITA: Report on Superannuation Guarantee
non-payment
The Senate Economic Reference Committee released its report into
Superannuation Guarantee non-payment on 2 May 2017. ARITA was
pleased to see that a number of the recommendations made in their
submission have been taken up by the Committee.
More...
ASFA: Call for submissions on second Insurance in
Superannuation Working Group (ISWG) discussion paper
The Insurance in Superannuation Working Group
(ISWG) released the third in a series of
discussion papers as a further step towards developing a Life
Insurance Code of Practice for superannuation trustees. The paper,
Member communication and engagement, outlines options to improve
member engagement and understanding of their insurance arrangements
within superannuation. Submissions close 02 June 2017 (05 May
2017).
More...
Report on Superannuation Guarantee
non-payment
The Senate Economic Reference Committee released its report into
Superannuation Guarantee non-payment on 2 May 2017.
More...
ASFA Submissions
10/05/2017 - Submission to the Australian Taxation Office
(ATO) - Submission for exercise of the
Commissioner's Remedial Powers Superannuation: Transitional
Capital Gains Tax (CGT) relief for unsegregated
superannuation funds.
More...
02/05/2017 - Submission to the Productivity Commission -
Superannuation: Alternative default models, draft report.
More...
ISA: Productivity Commission: Alternative Default Models
- Draft Paper. Risky business
ISA's submission to the Productivity Commission Inquiry into
the Alternative Default Models - Draft paper – May 2017.
More...
AASB Staff Paper: Modifications to Australian Accounting
Standards for Not-for-Profit Entities
Preparers and auditors of not-for-profit financial statements now
have the opportunity to better understand the extent and rationale
to which Australian-specific modifications have been made to IFRS
Standards, following the release of
AASB Staff Paper: Modifications to Australian Accounting
Standards for Not-for-Profit Entities (11 May 2017).
Draft AML/CTF Rules resulting from the Review of the
Act
Public consultation is open until 22 May 2017.
Reminder: Transition period for updated fee and cost
disclosures
ASIC has extended the transition period for trustees of
superannuation funds and responsible entities of managed funds and
other managed investment schemes (issuers) to comply with updated
fee and cost disclosure requirements in relation to product
disclosure statements (PDSs), until 30 September
2017.
More...
Current Consultations and Submissions
Extending Crowd-sourced Equity Funding (CSEF) to proprietary companies – 09/05/2017.
Black Economy Taskforce – 09/05/2017.
ASIC Supervisory Cost Recovery Levy Regulations 2017 – 04/05/2017.
Refining the Insolvency Law Reform Act 2016 – 03/05/2017.
Commonwealth Inquiries
Superannuation Guarantee non-payment
Status: Submissions Closed; Date Referred: 01 December 2016;
Reporting Date: 02 May 2017.
Scrutiny of financial advice
Status: Re-referred; Date Referred: 11 October 2016; Reporting
Date: 30 June 2017.
Superbad - wage theft and non-compliance of the
Superannuation Guarantee
Senate Economic References Committee: 2 May 2017
This report has been prepared by the Senate Economic References
Committee, concerned by recent analysis by Industry Super Australia
that indicates that employers failed to pay an aggregate amount.
The report noted employees were losing over $2,000 in super
payments per year on average, with the most vulnerable groups in
society most in danger.
The Commonwealth Budget: A Quick Guide
Parliamentary Library Research Publications: Commonwealth of
Australia: 08 May 2017.
Cases
Wats v Infosys Technologies Limited Australia [2017] FCCA
866
PRACTICE AND PROCEDURE – Application for summary judgment by
Respondent pursuant to s.17A of the Federal Circuit Court of
Australia Act 1999 (Cth) and r.13.10(a) of the Federal
Circuit Court Rules 2001 (Cth) – in his substantive case
the Applicant alleges contravention of s.340 of the Fair Work
Act 2009 (Cth) ("the Act") on the basis that he is
entitled to the benefit of workplace law, being the
Superannuation Guarantee (Administration) Act 1992 (Cth)
("the SGA Act") – held that because of the
interaction between the SGA Act, the Superannuation Guarantee
(Administration) Regulations 1993 (Cth), the Social
Security (International Agreements) Act 1999 (Cth) ("the
SSIA Act"), including sch. 31 to the SSIA Act which contains
an agreement between India and Australia, the Applicant is not
entitled to the benefit of the SGA Act – held that the
Applicant did not have a workplace right within the meaning of
s.341 of the Act – held that the Applicant has no reasonable
prospect of successfully prosecuting the proceeding –
application for summary judgment granted.
Australian Securities and Investments Commission v Australia
and New Zealand Banking Group Limited [2017] FCA
459
PRACTICE AND PROCEDURE – corporations and securities –
financial markets – prime bank bills – bank bill swap
reference rate (BBSW) – alleged financial
market manipulation concerning artificial prices – ss 1041A
and 1041B of the Corporations Act 2001 (Cth) –
applications to amend originating process and statement of claim in
each proceeding – applications to extend the time for the
filing and service of evidence by the defendants –
applications to vacate trial date – whether the defendants
will suffer prejudice if the existing trial date is not vacated
– applications allowed in part.
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.