Australia: Superannuation & Funds Management - What's News - 21 August 2012

Last Updated: 29 August 2012
Article by Jenny Willcocks

Most Read Contributor in Australia, September 2016

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


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...



[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.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Mondaq Advice Centre (MACs)
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.