Australia: Superannuation & Funds Management - What's News - 29 November 2011

Last Updated: 3 December 2011
Article by Jenny Willcocks


FOFA Tranche 2 reforms tabled in Parliament today

The FOFA Tranche 2 reforms were tabled in parliament, gaining industry support and reinforcing the Government's speed to move these reforms through both houses. Included in the reforms are the banning of conflicted remuneration payments that influence financial advice proposals and amendments to the Best Interest Duty (24 November 2011)   More...

More moves on financial advisers

The federal government is continuing its shake-up of the financial services industry, with a new measure to impose a "best interests" duty on advisers. The legislation introduced (Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011) also stops advisers taking payments where there's a potential conflict of interest (24 November 2011)    More...

Profession welcomes the next stage in financial planning reforms

The Financial Planning Association supports the FOFA Tranche 2 reforms tabled in Parliament, noting the government's effort to improve the quality and availability of financial advice for all consumers. The FPA welcomes the banning of investment commissions and other conflicted remuneration, in line with its own remuneration policy due to commence on 1 July 2012 (24 November 2011)   More...

Superannuation guarantee to rise as Government gets mining tax

The superannuation guarantee will rise from its existing 9 per cent to 12 per cent over the next eight years following the Government's successful negotiation of its Mineral Resource Rent Tax (MRRT) legislation through the House of Representatives (23 November 2011) More...

Financial Planning Association welcomes Superannuation Guarantee measures

The Financial Planning Association welcomes the historic passing of the Superannuation Guarantee Bill through Parliament. The bill will be debated in the Senate today with the majority of these measures expected to take effect from 1 July 2013, with the low income rebate commencing from 1 July 2012 (23 November 2011)    More...

Superannuation guarantee bill passes lower house

Australian Institute of Superannuation Trustees chief applauded the passing of the legislation, along with the increased contributions for lower-income workers. Treasurer Wayne Swan claimed the reforms would increase the superannuation of 8.4 million workers, and increase Australia's savings pool by $500,000 billion by 2035 (24 November 2011)    More..

Super increase will cost jobs: ACCI

The Australian Chamber of Commerce and Industry (ACCI) estimates the incremental rise in the super guarantee, from nine per cent to 12 per cent from 2013/14, will cost business $20 billion a year once it is fully implemented (24 November 2011)     More...

Platforms call for FOFA deadline extension

Major platform providers have called for parts of the Future of Financial Advice (FOFA) reforms to be delayed due to lingering uncertainty with respect to grandfathering and opt-in arrangements. Companies working in the financial services sector will have until 1 July 2012 to make final adjustments to their business models, IT and compliance systems (23 November 2011)    More...

Super TFN draft open for consultation

Treasury has moved a step closer to allowing the use of tax file numbers (TFN) to combine superannuation accounts and other retirement savings after releasing draft amendments for consultation. The draft laws would allow superannuation trustees and retirement savings account (RSA) providers to use TFNs to consolidate accounts in a bid to whittle away at Australia's $18-billion unclaimed super (23 November 2011) More...

Lost super transferring to be easier

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 introduced into the House of Representatives today will change existing laws to make it simpler for members of lost superannuation fund and retirement savings account holders to consolidate their benefits. Superannuation members with lost funds fill in a simple transfer request online and submit it electronically to the tax office (23 November 2011) More...

Directors get reprieve from super liabilities

Directors have been given a reprieve from personal responsibility to meet employees' superannuation obligations if their companies fail following the government's temporary removal of its proposal. The government removed schedule 3 from the Tax Laws Amendment (2011 Measures No. 8) Bill 2011 and the Pay As You Go Withholding Non-compliance Tax Bill 2011 (22 November 2011)      More...

ATO green lights mortgaged assets for SMSFs

A recent Australian Taxation Office (ATO) interpretive decision has indicated a self-managed superannuation fund (SMSF) can acquire an asset that has an associated mortgage (22 November 2011) More...

Private equity fears low-fee super obsession

New superannuation rules have alarmed private equity companies, who fear a new focus on low fees will stop fund managers investing in their funds at a time when the industry is already facing a complex tax environment and reputational issues (21 November 2011)     More...

APRA urges trustees to adhere to industry standards

The Australian Prudential Regulatory Authority is calling on superannuation fund trustees to ensure the outsourced marketers and product designers of their funds are adhering to industry standards and that the trustees at all times are ultimately responsible (16 November 2011)     More...

AUSTRAC publishes list of authorised external auditors

AUSTRAC has published a list of individuals it has authorised as external auditors under section 164 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). The term of authorisation will be for two years (15 November 2011)& More...

Money laundering in Australia 2011

Author: Australian Transaction Reports and Analysis Centre
This report presents a consolidated picture of current money laundering - the indicators and activities involved, the sectors and professions which are vulnerable, a range of new threats which are emerging, and the general framework of regulations and actions necessary to identify and prevent this crime (15 November 2011) More...

Practice Notes

Treasury: Use of TFN's by super funds

Treasury has released consultation draft regulations to support legislation providing for the expanded use of tax file numbers.  The legislation provides that superannuation fund trustees and retirement savings account providers can use tax file numbers as a primary locator of member accounts, and from 1 January 2012, in order to facilitate consolidation of multiple member accounts.  Consultation will close on Friday, 25 November 2011.

ASIC consultation paper - Strengthening the regulation of research report

ASIC has released the  Consultation Paper 171, Strengthening the regulation of research report providers (including research houses) proposing research report providers, including research houses, separate their business units in order to manage conflicts of interest and improve confidence in the independence and quality of research reports.    More...


Commonwealth Bills Progress

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 

Schedule 1 to this Bill amends the Retirement Savings Accounts Act 1997 and the Superannuation Industry (Supervision) Act 1993 to enable certain superannuation fund members to electronically request the consolidation of their superannuation benefits through the Australian Taxation Office.
CGT and business restructures — Part 1: Share or interest sale facilities for foreign interest holders in a restructure
CGT and business restructures — Part 2: CGT demerger relief
CGT and business restructures — Part 3: Roll-overs for change of incorporation
GST financial supply provisions
GST treatment of new residential premises
Deductible gift recipients
Intro Reps and Second Reading Speech (23 November 2011)

Tax Laws Amendment (Stronger, Fairer, Simpler and Other Measures) Bill 2011

Amends Superannuation (Government Co-contribution for Low Income Earners) Act 2003 Taxation Administration Act 1953 Income Tax (Transitional Provisions) Act 1997 |Income Tax Assessment Act 1997
Passed Reps with amendments (22 November 2011)

Superannuation Guarantee (Administration) Amendment Bill 2011 

Amends Superannuation Guarantee (Administration) Act 1992
Changes to the superannuation guarantee - Schedule 1 to this Bill amends the Superannuation Guarantee (Administration) Act 1992 to increase the age of an employee at which the superannuation guarantee (SG) no longer needs to be provided from 70 to 75, and to gradually increase the SG charge percentage from 9 per cent to 12 per cent
Passed Reps with amendments (23 November 2011)

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