Australia: Superannuation & Funds Management - What's News in Superannuation and Funds Management - 10 July 2012

In the media

Misguided tax law puts directors under risk over unpaid super entitlements OPINION John Colvin - The Australian – 06 July 2012 - While COAG works to remedy the economic problems caused by ill-advised legislation, the federal government adds to the director liability burden. The Tax Laws Amendment (2012 Measures No 2) Bill 2012, passed through Parliament, means all of Australia's 2.2 million directors are at risk of being personally liable for a company's unpaid employee superannuation guarantee entitlements. More...

Employers caution against super shake-up
SMH – 05 July 2012 - Employers have cautioned against a radical shake-up of the $7 billion-a-year market for managing the retirement savings of many of the nation's lowest paid workers. The Productivity Commission last week criticised the superannuation arrangements for the 1.5 million workers covered by industrial awards, a market dominated by union-linked industry super funds. More...

New research links past super fund performance with future performance
INDUSTRY SUPER NETWORK – 05 July 2012 - New research undertaken by Deloitte Access Economics (DAE) has revealed that the track record of super funds in delivering returns to members is a valuable measure of how they will perform in the future (compared to other funds). The research undertook detailed analysis of official APRA fund level data over eight financial years (2004 to 2011) to determine if the relative performance of superannuation funds in the first four-year period was replicated in the second. More...

Hard-working Australians missing $17.4 billion in lost superannuation
DAILY TETEGRAPH – 04 July 2012- Hard-working Australians are missing $17.4 billion in lost superannuation - more than the Big Four banks' half-yearly profits combined. New figures show the average value in 3.6 million lost or forgotten super accounts has reached $4800. More...

Found: $2.8 Billion In Lost Super
BILL SHORTEN - 04 July 0212 - More Australians are being reunited with their superannuation with the total amount of lost super now $17.4 billion, a 14 per cent fall from the previously reported total of $20.2 billion. Minister for Financial Services and Superannuation, Bill Shorten said the lost super figures released today were a step in the right direction and demonstrated that the Government's initiatives to reform the super system were making an impact. "The number of lost member accounts fell from 5 million to 3.6 million - a reduction of 28 per cent," Mr Shorten said. More...

Super funds in $4 billion merger
ABC – 03 July 2012 - Two superannuation funds have merged to form a $4 billion fund with 160,000 members. StatewideSuper and Local Super operate in South Australia and the Northern Territory. A name for the merged fund is yet to be finalised. More...

ASFA welcomes merger of StatewideSuper and Local Super
ASFA – 03 July 2012 - The Association of Superannuation Funds of Australia welcomes the completion of the merger of StatewideSuper and Local Super, creating a $4 billion, 160,000-member superannuation fund that will be the leading industry fund based in South Australia and the Northern Territory. More...

Large funds to contribute more to levy
INVESTOR DAILY – 03 July 2012 - Treasury has increased the maximum rate that large superannuation funds will have to contribute to the supervisory levy for 2012/13, which in part will pay for the implementation of SuperStream. The Australian Institute for Superannuation Trustees (AIST) said the revision of the maximum amount provided a better balance between the contribution of smaller and larger super funds. More...

Superannuation Boost for 3.6 Million Australians
BILL SHORTEN 01 July 2012 - The Government will make the superannuation system fairer by ensuring that low income individuals earning up to $37,000 a year effectively pay no tax on their superannuation contributions, FROM 01 July 2012. The measure, known as the Low Income Superannuation Contribution, is funded by the Minerals Resource Rent Tax. More...

Default selection process must protect members
AIST – 29 June 2012 - The Australian Institute of Superannuation Trustees has welcomes the release of the draft report from the Productivity Commission into default superannuation arrangements as a starting point for further discussions on the selection of default super funds in Industrial Awards. These included appropriate return and risk profiles for employees, insurance needs and issues around members being switched to more expensive funds upon exiting employment. More...

Report urges transparency on super options
PC – 29 June 2012 - The Productivity Commission is calling for more transparency and competition in the selection of default superannuation funds. In a draft report, the commission has urged the Federal Government to give workers more options for their default fund. More...

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...

ASIC updates policy on administrative action against financial services providers
ASIC - 28 June 2012 - ASIC have released a revised version of Regulatory Guide 98 to assist participants in the financial services industry understand when and how we may take administrative action such as a banning action. More...

Report 291 Custodial and Depository services in Australia (REP 291)- July 2012
Author: Australian securities and Investments Commission Foreshadows ASIC's intention to consult with industry about updating its regulatory guidance for the holding of scheme property. In addition, ASIC are proposing changes to the financial resource requirements of custodians, and to require responsible entities and other financial product issuers to provide clearer disclosure about the role of custodians in retail marketing material, including product disclosure statements (PDS). More...

Persistence in Superannuation Fund Returns – June 2012
Author: Deloitte Access Economics; Industry Super Network (ISN) commissioned. The report indirectly supports findings of Rainmaker research conducted several years ago that found persistency in market rankings of default options in workplace super funds. This latest research report analysed raw returns in two three year periods, the first between 2004 and 2007 and the second between 2008 and 2011. Report

Custodians face greater ASIC scrutiny
Author: Bela Moore; SuperReview 05 July 2012
The ASIC 'good practice' recommendations for custodians and responsible entities released today address ASIC's concerns regarding the safety of investment assets that custodians hold, their duty of care, and whether custodians have internal controls ensuring the safety of assets held for others - particularly in light of recent collapses in the financial services industry. More...

Super funds hiding behind the rules: Superannuation Complaints Tribunal
Author: Benjamin Levy; SuperReview 05 July 2012
The chairperson of the Superannuation Complaints Tribunal, Jocelyn Furlan, has strongly criticised super funds for trying to use superannuation rules as a fig leaf when dealing with member complaints, in an address to the Australian Institute of Superannuation Trustees client services symposium in Melbourne. More...

SuperSeeker online
Recent enhancements to the online tool SuperSeeker make it much easier for people to keep track of their super. By logging into a secure system people can see details of their active accounts, as well as any lost super and super that the Australian Taxation Office holds on their behalf.

Consultation for Default Superannuation Funds: Draft Report
This draft report was released on 29 June 2012 to assist participants in preparing a submission to the public inquiry into Default Superannuation Funds in Modern Awards. The public are invited to examine this draft and provide written comment. The deadline for all written responses is Friday 3 August 2012. More...

ASFA 2012 – Sydney, 28-30 November 2012
The opening speaker at this year's Conference will be former prime minister Paul Keating; a key figure in the history of superannuation in Australia. It's a fitting start to ASFA 2012 which celebrates 20 years of SG and 50 years of ASFA. Register now

ASFA: MySuper authorisation and Transition to MySuper Standard SPS 410
ASFA would like to make a more general comment about the timeframes of the Authorisation process and compliance with the Standard 4 July – Submission

ASFA: Refund of excess concessional contributions regulations
Rules for pensions and annuities in Subdivision 1A.1 of the SIS Regulations. The concern is that a member may have converted their accumulation benefit into an income stream prior to receiving an offer from the Commissioner of Taxation. To address this, ASFA requests that consideration be given to amending SIS Regulations: 4 July – Submission

Consultation - APRA releases proposed eligible rollover fund authorisation requirements
The Australian Prudential Regulation Authority (APRA) released for consultation a discussion paper on proposed arrangements for the authorisation of eligible rollover funds (ERF). Accompanying the discussion paper is a draft authorisation application form together with instructions (28 June 2012). More...

ASIC - policy on administrative action against financial services providers
The revised policy reflects amendments to ASIC's administrative powers under the Corporations Act (the Act), introduced as part of the Future of Financial Advice (FOFA) reforms which are due to commence on 1 July 2012. Other revisions ensure consistency between RG 98 and Information Sheet 151 ASIC's approach to enforcement ( INFO 151), which sets out how ASIC exercises its enforcement powers (28 June 2012). More...

ASIC - information sheet for licensing of financial services in emissions units
ASIC's Information Sheet 156 Applying for a licence for emmissions units ( INFO 156) coincides with the end of a two-month registration period (1 May – 30 June 2012) that temporarily authorised registrants to provide certain financial services regarding emissions units prior to holding an AFS licence for those activities. From 1 July, individual or entity that provides financial services in those units will require an AFS licence unless an exemption applies (27 June 2012). More...

Legislation

Commonwealth

Acts

Superannuation Supervisory Levy Imposition Amendment Act No 92 of 2012
An Act to amend the Superannuation Supervisory Levy Imposition Act 1998, and for related purposes
Administered by: Treasury Originating Bill: Superannuation Supervisory Levy Imposition Amendment Bill 2012- Registered 05 July 2012. More...

Superannuation Legislation Amendment (Stronger Super) Act No 91 of 2012
An Act to amend the law relating to superannuation, and for other purposes
Administered by: Treasury; Originating Bill: Superannuation Legislation Amendment (Stronger Super) Bill 2012 - Registered 05 July 2012. More...

Tax and Superannuation Laws Amendment (2012 Measures No. 1) Act No 75 of 2012
An Act to amend the law relating to taxation and superannuation, and for related purposes
Administered by: Treasury; Originating Bill: Tax and Superannuation Laws Amendment (2012 Measures No. 1) Bill 2012 - Registered 03 July 2012. More...

Corporations Amendment (Further Future of Financial Advice Measures) Act No 68 of 2011
An Act to amend the law in relation to financial products, and for related purposes
Administered by: Treasury Originating Bill: Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011 Registered 02 July 2012 - Date of Assent 27 June 2012. More...

Corporations Amendment (Future of Financial Advice) Act No 67 of 2012
An Act to amend the law in relation to financial advice, and for related purposes
Administered by: Treasury Originating Bill: Corporations Amendment (Future of Financial Advice) Bill 2011 Registered 02 July 2012 - Date of Assent 27 June 2012. More...

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