Australia: Superannuation & Funds Management - What's News? - 16 May 2012

Last Updated: 19 May 2012
Most Read Contributor in Australia, September 2016


MIT Budget inconsistencies spark concern
The surprise doubling of withholding tax for foreign investment in managed investment trusts, effective 01 July 2012, has been criticised as inconsistent with the IMR initiative. The announcement sparked immediate concern over the uncertainty created for foreign investors, particularly those who have already invested in Australia on the expectation that the reduced rate of 7.5% would apply over the term of the investment (10 May 2012) More...

Government Budget Calls for Levy on Superannuations to Pay for SuperStream Reforms
The government's proposed 2012-13 budget will see an increase in funding for regulators, aimed at implementing the Stronger Super and financial advice reforms. The government has proposed to cover the costs of implementing the administrative reforms of the SuperStream package by a temporary levy on all superannuation funds regulated by the Australian Prudential Regulation Authority (09 May 2012) More...

Industry broadly critical of Budget
The Federal Budget has received a broadly negative response from the financial services industry, with financial planning, accounting and superannuation bodies lamenting the impact of a range of changes (08 May 2012) More...

Parliamentary inquiry needed into tax efficient investments: ASFA
The peak body for superannuation has called for a parliamentary inquiry into the mobility of tax effective investments in the wake of the Budget announcement that the contributions tax on super is set to change. The Association of Superannuation Funds of Australia (ASFA) said superannuation tax concessions must be set with a long-term view of ensuring better retirement incomes for ageing Australians (08 May 2012) More...

Superannuation gets a boost for seniors in Federal Budget
Boosting superannuation taxes and reducing fees and charges are the centrepoint of the Government's aim to ensure Australians live comfortably in retirement. By lifting the superannuation guarantee rate to 12 per cent, the Government will boost the retirement savings of 8.4 million workers and increase the pool of national savings (08 May 2012) More...

Budget confirms super hit on higher income earners
The Federal Government has cut the superannuation tax concessions applying to higher income earners. The Federal Treasurer, Wayne Swan, has confirmed that the reduced concession will apply to people earning more than $300,000 and will become effective from 1 July, this year (08 May 2012) More...

FPA calls on ASIC for clearer advice definitions
The Financial Planning Association has called on The Australian Securities and Investments Commission for greater clarity and definitions of quality advice (02 May 2012) More...

ASIC flags guidance on code approval
ASIC has flagged its intention to publish guidance on approval of codes in the advice sector, following changes to the FOFA Bill. Under recent changes, the Australian Securities and Investments Commission (ASIC) would have the ability to exempt advisers from the opt-in obligation if the regulator was satisfied that the adviser was signed to a professional code that 'obviates the need' for opt-in (02 May 2012) More...

ASIC warns financial services licensees about the use of the term 'independent'
ASIC has corrected claims made by insurance brokers and financial planners about the independence of their services. . In recent a recent surveillance project, ASIC found 21 instances of insurance brokers and financial planners making statements about the independence of the licensee or the services they provide in breach of the Corporations Act (02 May 2012) More...

ASIC releases policies on adviser training and financial requirements for carbon financial products
ASIC has released its final policies on adviser training and financial requirements for entities and individuals providing financial services in relation to emissions units following a public consultation. Registration will help providers of financial services meet their licensing requirements under the Corporations Act 2001 (02 May 2012) More...

Release of revised National Carbon Offset Scheme
A revised National Carbon Offset Scheme (NCOS) has been released by the Government, allowing Australian businesses to offset their products with pollution reduction under the Australian Government's Carbon Farming Initiative (CFI). The Standard provides guidance on what is a genuine voluntary offset and sets minimum requirements for calculating, auditing and offsetting the carbon footprint of an organisation, product or event to achieve carbon neutrality (02 May 2012) More...

Exemption for financial advisers providing tax advice extended
Financial advisers will be granted an extension to their exemption from the taxation agent services regime until 30 June 2013. This decision will extend for one year the current exemption, which expires on 30 June 2012 and will allow for a smooth transition to the new regulatory regime (30 April 2012) More...

Future of advice post FoFA
Author: Peter Kell, Commissioner, Australian Securities and Investments Commission
Speech to the Association of Financial Advisers / Financial Services Council Leadership Forum (1 May 2012) More....

Review of compensation arrangements for consumers of financial services - Consultation Paper
As part of the Future of Financial Advice (FoFA) reforms announced on 26 April 2010, the Government commissioned Richard St. John to undertake a review to consider the need for, and costs and benefits of a statutory compensation scheme. Mr St. John draws attention to a number of issues on which comment is invited (raised at the end of Chapters 2 to 5) More...

Copy of Consultation Paper
The consultation paper provides information, frames issues and raises questions on the need for, and costs and benefits of, a statutory compensation scheme for clients who suffer damage or incur loss as a result of misconduct by persons with whom they have dealt in the financial services sector. Consultation Paper (consolidated) More...

APRA releases proposed MySuper authorisation requirements
Accompanying the discussion paper is a draft authorisation application form together with instructions, as well as draft Prudential Standard SPS 410 MySuper Transition (SPS 410) which sets out requirements for trustees moving member balances into a MySuper product. The authorisation process for RSE licensees wishing to offer MySuper products will commence from 1 January 2013. The consultation package can be found on the APRA website.

Privacy laws set to reform
Australia's privacy laws will be reformed to better protect people's personal information, simplify credit reporting arrangements and give new enforcement powers to the Privacy Commissioner. The Government will also modernise credit reporting arrangements. The changes will be achieved through amendments to the Privacy Act 1988. Further information is available from (02 May 2012) More...



Corporations Amendment (Phoenixing and Other Measures) Bill 2012
Passed by both Houses of Parliament and is awaiting Royal Assent. The principal object is to amend the Corporations Act 2001 to give ASIC the power to place a company into liquidation in order to remove current impediments to workers accessing their entitlements under the General Employee Entitlements and Redundancy Scheme (GEERS). Before making a winding up order, ASIC must give notice of its intention to make the order on the ASIC database, and publish notice of its intention, in the manner prescribed (09 May 2012) More...

ASIC Class Order [CO 12/416]
This class order provides flexibility in how in-use notice information is provided to ASIC for employer-sponsored superannuation products in light of the unique nature of those products. Administered by: Treasury (03 May 2012) More...

ASIC Class Order [CO 12/415]
This class order provides flexibility in how in-use notice information is provided to ASIC for employer-sponsored superannuation products in light of the unique nature of those products. Administered by: Treasury (02 May 2012) More...

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