In the media
Carbon tax marks biggest overhaul since the
GST
SMH – 23 June 2012 - Households and businesses face the
biggest tax shake-up in more than a decade in just over a week, as
the carbon price and major changes to tax rates and family payments
take effect. Tax increases on superannuation will target higher
income earners, while people earning less than $37,000 will
effectively pay no tax on compulsory super contributions.
More...
Reforms to cut financial advice costs
AUST - 23 June 2012 - Consumers are to gain new ways to drive down
the cost of financial advice under federal reforms to stamp out
hidden commissions while boosting competition among professional
advisers. Changes unveiled today will sharpen the oversight of
superannuation funds amid fears that workers could be fleeced by
criminals or poor management.
More...
Introduction of Investment Manager Regime Legislation to
the Parliament
BILL SHORTEN 21 June 2012 - The Minister for Financial Services
and Superannuation introduced into Parliament a bill to amend the
income tax law which contain the first two elements of the
Investment Manager Regime (IMR). This bill will provide foreign
managed funds and their investors with greater certainty as to the
tax treatment of certain income of the fund and further the
Government's goal of establishing Australia as a regional
financial centre.
More...
FOFA passes through Senate
FPA – 20 June 2012 - The Financial Planning Association
(FPA) welcomes the clarity provided through the passing of the
Future of Financial Advice (FOFA) reforms by the Senate today.
Effective as law from 01 July 2012, FOFA compliance will become
mandatory for financial planners and licensees from 1 July 2013,
following a 12-month transition period.
More...
Passage of FOFA welcome: ASFA
ASSOCIATION OF SUPERANNUATION FUNDS AUSTRALIA LTD- 20 June 2012 -
The peak body for superannuation welcomed the passage through the
Senate of the Future of Financial Advice (FOFA) legislation. The
ASFA said FOFA is a good reform which will end the practice of
conflicted remuneration and includes a statutory duty for advisers
to act in the customer's best interest. More...
SPAA says 'no' to a levy on SMSFs for fraud and
theft
SELF MANAGED SUPER FUNDS PROFESSIONALS' ASSOCIATION OF
AUSTRALIA LIMITED – 20 June 2012 - A levy on SMSFs in
case of theft or fraud would be bad policy and would only have the
effect or hurting the vast majority of trustees who play by the
rules, says the SMSF Professionals' Association of Australia
(SPAA).
More...
Industry supports FOFA passage
The Senate's passing of the government's Future of
Financial Advice (FOFA) reforms has been met with a positive
response from industry participants. The FPA was pleased the
government had also reconfirmed its commitment to enshrining the
term 'financial planner' in the Corporations Act and was
now accelerating the process (21 June 2012). More...
FOFA passes, but confusion over enshrining
'financial planner'
The Government's Future of Financial Advice (FOFA) legislation
passed through the Senate yesterday, but there seems to be some
confusion over whether the terms 'financial planner' and
'financial adviser' will be enshrined in law (21 June
2012).
More...
Unresolved issues but super bill gets
through
The Future of Financial Advice legislation, which will impose a
duty on advisers to act in their clients' best interests and
which, until recently had included a mandatory "opt in"
arrangement by which advisers would have to seek re-engagement
every two years, had been scheduled to start on July 1.
But Financial Services and Superannuation Minister Bill Shorten has chosen to give it a non-mandatory launch this year (21 June 2012). More...
Councils facing threat of $150m super shortfall
hit
Local councils in Victoria are bracing for more than $150 million
in surprise charges as part of a defined benefits scheme from a
superannuation fund operated by Vision Super. The charges relate to
a defined benefit scheme dating back to the 1940s that guaranteed
council employees and their spouses annuity-style payments for
life. The fund closed in 1993 (21 June 2012).
More...
ASIC gives guidance for shorter PDS
regime
The corporate regulator has released short-form PDS guidance to
assist insurers of superannuation products and simple managed
investment schemes (19 June 2012). More...
Greater industry involvement required in super payments
standards
ASSOCIATION OF SUPERANNUATION FUNDS AUSTRALIA LTD 18 June 2012 -
Stronger Super legislation before the Parliament must be amended to
ensure the superannuation industry is jointly responsible with
Government for development of new standards, says the peak body for
the superannuation industry. The ASFA says it is important the
development and implementation of data and payments standards for
superannuation is done right.
Reforms to Super helping Australians make the most of
their super
BILL SHORTEN 18 June 2012 - Research released by Minister for
Financial Services and Superannuation Bill Shorten, shows broad
support for the super system, but many people continue to find it a
difficult topic to understand. Reforms to super announced by the
Gillard Government will help to ensure that these savings are
protected.
More...
A win for Small Business as Super becomes
easier
BILL SHORTEN 18 June 2012 - The measures contained in the
Superannuation Legislation Amendment (Stronger Super) Bill 2012
implement changes recommended by the Cooper review into
Australia's superannuation system. These reforms will remove
the need for employers to provide different information (or in a
different format) to different funds.
More...
APRA risk capital requirements no Basel
III
MEDIA – 14 June 2012 - APRA says it will not force
superannuation funds to hold 0.25 per cent of FUM as a risk capital
requirement, and will not dictate how superannuation funds
calculate the capital required to offset any potential losses from
operational risks. More...
ASIC cuts red tape on AFSLs
MEDIA – 13 June 2012 - ASIC has streamlined the process
of applying for an Australian financial services licence following
the revision of regulatory guides. The corporate regulator has
revised three of its regulatory guides for Australian financial
services licences (AFSL) in a bid to reduce industry red tape and
costs. More...
The world of superannuation contributions
Source: Mike Mitchell, Taxation in Australia, June 2012
The Australian Taxation Office has discretion to disregard or
allocate to another financial year all or part of a superannuation
contribution in very limited circumstances. This article examines a
number of common mistakes with regard to both concessional
contributions and non-concessional contributions that create
adverse tax consequences.
More...
Small business super clearing house 2012
Businesses with less than 20 employees can also take advantage of
the free small business super clearing house designed to reduce red
tape and compliance costs associated with meeting their super
guarantee obligations. Businesses can register for the service by
visiting www.medicareaustralia.gov.au/super
or phoning Medicare Australia on 1300 660 048.
Shorter PDS regime for superannuation
products
The new shorter PDS regime for superannuation products and simple
managed investment schemes commences fully on 22 June 2012. ASIC
has published Shorter PDSs: Complying with requirements for
superannuation products and simple managed investment schemes (
INFO 155) to provide concise guidance for industry on technical
issues related to implementation of the new shorter PDS regime.
ASIC has also updated Shorter PDS regime: Superannuation, managed
investment schemes and margin lending (
INFO 133) to reflect the amendments to the transition period
implemented by the Corporations Legislation Amendment Regulations
2011 (No.2).
ASIC will provide interim class order relief from the shorter PDS regime for multifunds, superannuation platforms and hedge funds (18 June 2012)
Cases
Paget and Commissioner of Taxation [2012] AATA
334
Superannuation - concessional contribution - excess contributions
tax – Commissioner's discretion to make a
determination to disregard concessional contribution or to allocate
concessional contribution to another financial year - timing of
contributions – consideration of when a concessional
contribution is "made" - contribution by applicant's
employer by electronic funds transfer - meaning of "special
circumstances" – "object" of Division 292
- whether contribution made would more appropriately be allocated
towards another financial year - whether it was reasonably
foreseeable, when the contribution was made, that the applicant
would have excess contributions - terms of any agreement or
arrangement between applicant and employer as to the amount and
timing of the contribution - extent to which applicant had control
over the making of the contribution – Commissioner's
objection decision affirmed. More...
Legislation
Commonwealth
Legislative Instruments
Family Law (Superannuation) Amendment Regulation 2012
(No. 1)
COMMONWEALTH OF AUSTRALIA 19/06/12
This regulation amends the Family Law (Superannuation) Regulations
2001 to reflect changes to some military and civilian
superannuation schemes and their administration. More...
Superannuation Legislation Amendment (Stronger Super)
Bill 2012
SENATE ECONOMICS COMMITTEE 13/06/12
Joint Committee on Corporations and Financial Services report on
the Superannuation Legislation Amendment (Stronger Super) Bill 2012
and Superannuation Supervisory Levy Imposition Amendment Bill 2012,
tabled 13 June 2012.
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.
