In the media
Households in financial stress risk losing super
security
MEDIA -19 August 2012 - Desperate property owners on the brink of
losing their homes are raiding their superannuation in record
numbers, accessing more than $100 million in emergency funds in the
past 12 months to keep the banks at bay. The claims for 2011-12
totalled $99.38 million, a 25% increase on the previous year and
well above the value of payments made in the aftermath of the
global financial crisis.
More...
Directors liable for super picks
THE AUSTRALIAN - 16 August 2012 - Super fund directors can be held
personally responsible for making bad investments after sweeping
federal government changes. Rolled out as part of the commitment to
improving the governance of Australia's $1.3 trillion
superannuation industry, the measures have gone too far, legal
experts say, and opened up directors to a new level of liability
(16 August 2012).
More...
Super governance Bill passes
FIN STANDARD – 16 August 2012 - The Federal opposition
argues that a scale test on superannuation fund trustees
inappropriately favours industry super funds. This comes on the
back of legislation passing through Parliament, which gives the
Australian Prudential Regulation Authority (APRA) the same powers
over superannuation funds that it has over banks and insurance
companies (16 August 2012). More...
Coalition say no to tougher super
governance
TREASURY – 15 August 2012 – The Minister for
Financial Services and Superannuation has welcomed the passage of
legislation through the Parliament that raises the standard for
those managing Australians' superannuation savings, as well as
closing a regulatory gap by giving APRA the same powers over
superannuation funds that it has over banks and insurance
companies.
More...
CSSA calls on Treasury for MySuper
clarity
FIN STANDARD – 14 August 2012 - The Corporate Super
Specialists Alliance calls on Treasury to provide greater clarity
and details on grandfathering provisions that will apply to the
MySuper legislation, or move the implementation date to 2014. To
date, Treasury has not released any details relating to platform
superannuation and investments. More...
Watchdog probes Tatts super scheme
SMH – 13 August 2012 - Two directors and a senior
executive from one of the country's oldest clubs have made
millions from a superannuation fund they were holding in trust for
members. A bookmakers co-operative is seeking legal advice and
complaints have been lodged with the corporate watchdog, ASIC, over
the scheme, which delivered more than $5 million to four of its
trustees over a six-year period.
More...
MySuper Bill could expose individual trustees to legal
action
FIN STANDARD – 13 August 2012 - Superannuation reforms
could leave individual trustees open to litigation, causing a group
of representative bodies to write to the Federal Government to
voice their concerns. In a joint submission, the Australian
Institute of Superannuation Trustees (AIST), the Financial Services
Council (FSC), The Association of Superannuation Funds of Australia
(ASFA) and ISN have flagged issues in the Superannuation
Legislation Amendment (Trustee Obligations and Prudential
Standards) Bill 2012. More...
ASIC reviews asset consultants
ASIC – 09 August 2012 - As part of our focus on
gatekeepers to the financial services industry, ASIC have conducted
a review to consider the role of asset consultants in the
superannuation and managed investments sectors.
ASIC reviews asset consultants
Super to eclipse banks as primary lender:
Cooper
FIN STANDARD – 09 August 2012 - Superannuation funds may
have more money to lend than banks in under a decade, and could
play a larger role in corporate lending than the corporate bond
market, said Jeremy Cooper, architect of the government's
Cooper Review. More...
Legal challenges face default super
inquiry
FIN STANDARD – 08 August 2012 - The changing role of
Government in recommending default super funds in modern awards
could lead to worker legal action against the Commonwealth. The Law
Council of Australia issued the warning at public hearings held by
the Productivity Commission (PC) last week. Even if legislation was
passed to protect either FWA or the expert panel and give them
immunity from suit, Girgis said a moral hazard for the Government
would still exist. More...
Pensions ruling opens Pandora's box for some super
funds
SPAA – 08 August 2012 - The State Technical Days held by
the SPAA has highlighted that the draft pensions ruling released by
the Australian Tax Office (ATO) still leaves open a Pandora's
Box on when a pension stops and starts. SPAA Director - Education
and Professional Standards, said that the publication of the final
ruling was eagerly awaited due to the significant impact it may
have on funds that 'are not doing the right thing in the eyes
of the Tax Commissioner'.
More...
CAMAC has published its report Managed Investment
Schemes
CAMAC – 07 August 2012 - The report is in response to a
request from the Government for advice on various matters
concerning the regulation of managed investment schemes (schemes)
under Chapter 5C of the Corporations Act, following the failure in
recent years of a number of high profile schemes, particularly in
the agribusiness sector.
More...
Speech to 2012 Citi Pension Executive
Summit
Author: David Bushby, Assistant Treasurer David Bradbury
Discusses Strength of the Australian economy; Engagement with
Asia; Foreign investment; Superannuation reforms; Increase in the
SG rate from 9% to 12%; MySuper; SuperStream; Superannuation
Roundtable (11 July 2012).
More...
Managed Investment Schemes Report
Author: Corporations and Markets Advisory Committee
It includes proposals for reform under the current legal framework
as well as setting out an alternative legal framework for the
regulation of schemes, described as the Separate Legal Entity (July
2012) Proposal.
Click here to download the Report
Current consultations
Tax relief for merging superannuation funds - public
consultation
Submissions close 24 August 2012 Hosted by the Treasury
Prudential Standards for superannuation frequently asked
questions
APRA has published 12 new FAQs regarding the prudential standards
for superannuation (15 August 2012)
More...
MySuper frequently asked questions
APRA has published four new FAQs regarding MySuper (15 August
2012) More...
ASIC consults on FOFA reforms
ASIC have released consultation papers containing proposed
guidance for two aspects of the Future of Financial Advice (FOFA)
reforms – scaled advice and the best interests
duty.
ASIC seeking feedback on proposals for:
Scaling advice while complying with best interests
obligations: RG 200 to be replaced
Complying with best interests duty: RG 175 to be updated
by end 2012
Consultation Paper 182 Future of financial advice: Best
interests duty and related obligations – Update to RG 175
(
CP 182)
Consultation Paper 183 Giving information, general advice and
scaled advice (
CP 183)).
The best interests duty obligations commence on 1 July 2013.
Submissions to CP 182 and CP 183 close on 20 September 2012 (09
August 2012)
ASIC consults on FOFA reforms
Cases
The Trustee for MH Ghali Superannuation Fund and
Commission of Taxation [2012] AATA 527
TAXATION – Superannuation Fund – Unit Trust
– fixed entitlement to the income of the Unit Trust
– meaning of the expression fixed entitlement –
fixed entitlement under an arrangement – the expression
arm's length – special income – Capital
Gains Tax – disposal of an asset – change of
ownership – shortfall penalty – remission of
penalty – adjustments to the Unit Trust register
– value of the units – distributions of income
– units held by the Superannuation Fund –
distribution entitlements of the superannuation fund –
the relationship of the Unit Trust and the Superannuation Fund. More...
Griffiths v The Trustees of the Parliamentary
Contributory Superannuation Fund [2012] NSWCA 231
Appeal dismissed - STATUTORY INTERPRETATION - appellant and former
member of Legislative Assembly married for duration of
parliamentary service, divorced and remarried just prior to former
member's death - whether appellant entitled to pension pursuant
to s 23(1) of the Parliamentary Contributory
Superannuation Act 1971 - extrinsic materials not able to be
relied upon to displace clear words of statute - Legislative
Assembly Members Superannuation Act 1946. More...
Edington v Board of Trustees of the State Public Sector
Superannuation Scheme [2012] QSC 211
EQUITY – TRUSTS AND TRUSTEES – PROCEEDINGS
BETWEEN TRUSTEES AND BENEFICIARIES OR THIRD PARTIES –
where the applicant was injured whilst working and received income
protection payments – where the applicant applied for a
total and permanent disablement benefit under the insurance
administered with the work superannuation scheme – where
the application was denied by the Board of trustees administering
the scheme on the basis the disablement related to an undeclared
pre-existing medical condition – where the Board's
decision was reviewed by the Superannuation Complaints Tribunal
– where the applicant applies under s 8 Trusts Act 1973
(Qld) for review of the Board's decision for alleged breach of
duty as trustees– whether the review of the Board's
decision by the Tribunal precludes this application in relation to
the Board's process of decision making
PROCEDURE – JUDGMENTS AND ORDERS – IN GENERAL
– CLASSIFICATION – FINAL AND INTERLOCUTORY
– where the respondent applies under r 16 of the Uniform
Civil Procedure Rules 1999 (Qld) for orders either striking out,
setting aside or permanently staying the proceeding –
whether the applicant has no real prospect of succeeding on any of
the allegations – whether there should be a final hearing
of the application. More...
Legislation
Commonwealth
[Draft] Superannuation Legislation Amendment (Stronger
Super and Other Measures Bill) (No. 2) Bill 2012
The Government has released for public consultation an exposure
draft for the pay slip reporting of superannuation contributions
measure and the accompanying explanatory materials. This measure
will amend the Superannuation Industry (Supervision) Act 1993 (the
SIS Act) to require employers to report, on pay slips, any
information prescribed in the regulations about superannuation
contributions. The regulations will in turn require employers to
report the amount of superannuation contributions, as well as the
date on which the employer expects to pay them.
20/02/2012 Submissions close 14/02/2012 Open for
Consultation and Comments
[Draft] Tax Laws Amendment (2012 Measures No. 5) Bill
2012
The Minister for Financial Services and Superannuation has
released for public consultation exposure draft materials to
provide income tax relief for merging superannuation funds. This
measure provides temporary taxation relief in the form of loss
relief and capital gains tax and revenue asset roll-over for
merging superannuation funds. This exposure draft includes the
changes announced by the Minister for Financial Services and
Superannuation in his press release of 3 August 2012.
12/09/2012 Submissions close (GST Margin Scheme and
Subdivided Land)
12/09/2012 Submissions close (Miscellaneous amendments to
the taxation laws, including minor amendments to the Minerals
Resource Rent Tax and Petroleum Resource Rent Tax
legislation)
24/08/2012 Submissions close (Tax relief for merging
superannuation funds)
Superannuation Legislation Amendments (Trustee
Obligations and Prudential Standards) Bill 2012
This Bill is the second tranche of legislation implementing the
Government's MySuper and governance reforms as part of Stronger
Super. The first tranche of legislation was introduced to the
Parliament on 3 November 2011 as the Superannuation Legislation
Amendment.
Senate 14/8/2012 Read a third time, passed all stages and
awaiting assent
Legislative Instruments
Superannuation Industry (Supervision) Amendment
Regulation 2012 (No. 2) SLI 2012 No. 183
This regulation amends the Superannuation Industry (Supervision)
Regulations 1994 to require trustees of self managed superannuation
funds (SMSFs) to consider insurance for members as part of the
fund's investment strategy, keep money and other assets of an
SMSF separate from those held by a trustee personally and by a
standard employer-sponsor or an associate of a standard
employer-sponsor and require SMSF assets to be valued at market
value for reporting purposes.
Registered 06 August 2012 Commencement 07 August 2012. More...
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.