Australia: Superannuation & Funds Management - What's News - 21 May 2014

Last Updated: 24 May 2014
Most Read Contributor in Australia, September 2016

In the media

Federal Budget 2014: Slash and burn no match for superannuation tax breaks
MEDIA – 16 May 2014 – The size of the biggest tax hikes and major savings initiatives in this year's budget are dwarfed by the hundreds of billions in revenue that Treasury calculates it forgoes through tax concessions on superannuation and capital gains. More...

Financial services sector urged to self-regulate
MEDIA – 15 May 2014 – The cuts to ASIC's funding in the federal budget have put self-regulation firmly on the agenda for both the superannuation and financial planning sectors. Association of Superannuation Funds of Australia (ASFA) chief executive said it is up to the superannuation industry to show it can develop its own disclosure standards and monitor its own governance standards. More...

ATO warned on simplistic approach to FX
MEDIA – 15 May 2014 – The Australian Taxation Office (ATO) has been warned that a draft tax ruling on foreign currency hedging transactions underestimates the complexity of such arrangements and could be detrimental to the interests of Australian superannuation funds. More...

Australian Mutual Holdings pays penalties for misleading statements
MEDIA – 15 May 2014 – Australian Mutual Holdings Limited has paid $20,400 in penalties after being issued two infringement notices for misleading statements in Product Disclosure Statements for two investor funds it manages as responsible entity. Australian Mutual Holdings pays penalties for misleading statements

Financial service providers caught out breaking FOS rules
MEDIA – 14 May 2014 – Financial service providers are increasingly contravening compliance rules by attempting to recover debts from clients connected to disputes that are under investigation by FOS. More...

New Military Superannuation Scheme arrangements
TREASURY – 13 May 2014 – The Abbott Government is introducing new modern military superannuation arrangements for people joining the Australian Defence Force (ADF). As part of these changes, the Government will establish ADF Super on 1 July 2016. More...

Superannuation Excess Contributions Tax
TREASURY – 13 May 2014 – Currently, superannuation contributions that exceed the non-concessional contributions cap are taxed punitively at the top marginal tax rate. For any excess contributions made after 1 July 2013, breaching the non-concessional cap, the Government will allow individuals to withdraw those excess contributions and associated earnings. More...

Retail bankers decry FOFA "overreach"
MEDIA – 14 May 2014 – The Australian Bankers' Association (ABA) has urged the government to fast-track a number of "necessary technical amendments" to FOFA in order to exclude retail banking businesses from the regime. More...

FOS complaints up in 2014
MEDIA – 14 May 2014 – The number of complaints received by the Financial Ombudsman Service has increased by nine per cent in the first quarter of 2014. In its most recent circular, the ombudsman revealed it received 8,081 complaints in the March quarter – up from 7,391 in the December 2013 quarter. More...

Super system "not sustainable": Deloitte
MEDIA – 07 May 2014 – The Australian superannuation system is not "sustainable", with the forecast for the next 20 years showing people retiring with low super balances and a very high reliance on the age pension, according to Deloitte. More...

New ASIC team to cut red tape
MEDIA – 08 May 2014 – A new "deregulation team" set up by ASIC has found the regulator could reduce the number of forms it issues to the financial services industry by 10%. In Report 391, ASIC said the deregulation team was working closely with Treasury, the Office of Best Practice Regulation and the government to "identify and cut red tape". More...

Stakeholders stage FOFA confrontation in Senate submissions
MEDIA – 07 May 2014 – A new round of submissions to the Senate inquiry into the Future of Financial Advice (FoFA) amendments has seen consumers, academics and industry bodies holding increasingly opposing positions, including advisers' best interest duty and the "catch-all" phrase. More...

Super to fund mortgage securitisation
MORTGAGE BUSINESS – 07 May 2014 – The rebirth of the Australian securitisation market will provide a strong investment for the nation's $1.7 trillion superannuation pool, according to Financial Services Council chief executive John Brogden. ASF chief executive Chris Dalton, the Australian RMBS market is currently one of the few functioning RMBS markets in the world. More...

Banks fight to bring back commission-sales free-for-all to superannuation
ISA – 09 May 2014 – The Financial Services Council, on behalf of the bank owned super funds, is pursuing legal action in the Federal Court against the Fair Work Commission, in an extraordinary attempt to remove the quality filter recommended by the Productivity Commission. More...

FSC initiates court proceedings on the validity of the FWC Expert Panel
FSC – 07 May 2014 – In an application with the Federal Court of Australia to challenge the validity of the Fair Work Commission's Expert Panel responsible for the selection of MySuper funds, the FSC will contest that the constitution of the Expert Panel does not comply with the provisions of the Fair Work Act. More...

Government defers portfolio disclosure rules
MEDIA – 06 May 2014 – A rushed and inadequate consultation process has led the federal government to defer the start date for the new rules requiring superannuation funds to disclose investment holdings. The new start date for the regime will be 1 July 2015, with the minister pointing to additional consultation and "consumer testing" to come. More...

FOFA amendments "lack clarity" on advice
MEDIA – 05 May 2014 – The Insurance Council of Australia (ICA) says proposed amendments to the Future of Financial Advice legislation lack clarity on the scope of advice, claiming the amendments should spell out the short form of the best-interests duty applicable to general insurance products in the Corporations Act. More...

AIST submission: Giving effect to the FATCA IGA
In April 2014, the Commonwealth of Australia signed an intergovernmental agreement with the United States of America to improve international tax compliance and implement the US Foreign Account Tax Compliance Act (FATCA). This exposure draft gives effect to Australia's obligations under this agreement, under which superannuation providers are generally exempt. More...

ASIC report on red tape reduction and public feedback ASIC – 07 May 2014 – ASIC report outlines ongoing and new initiatives to cut red-tape and lower compliance costs for our regulated population. ASIC welcomes ongoing feedback and suggestions from its stakeholders by 18 June 2014. ASIC reports on red tape reduction and invites feedback See Report 391 ASIC's deregulatory initiatives ( REP 391)

AUSTRAC: Application for exemptions and modifications under the AML/CTF Act
AUSTRAC – 08 May 2014 – AUSTRAC Guidance note released: Application for exemptions and modifications under the AML/CTF Act, 8 May 2014. Guidance note released: Application for exemptions and modifications under the AML/CTF Act

ABA submission: to the Senate Economics Legislation Committee on the Future of Financial Advice (FOFA)
ABA – 05 May 2014 – The ABA provided comments to the inquiry into the provisions of the Corporations Amendment (Streamlining of Future of Financial Advice) Bill 2014. The Australian Bankers' Association (ABA) submission to the Senate Economics Legislation Committee on the Future of Financial Advice (FoFA)

Treasury: Financial Industry Supervisory Levy Methodology Review
The Treasury response to submissions contains a number of conclusions for consideration by Government in the context of the 2014-15 Financial Institution Supervisory levies setting process. More...



Superannuation (Excess Untaxed Roll-over Amounts Tax) Amendment (Temporary Budget Repair Levy) Bill 2014
Schedule 1 – Temporary budget repair levy – Superannuation (Excess Untaxed Roll-over Amounts Tax) Act 2007. Temporary budget repair levy – This section applies if the roll-over superannuation benefit that consists of, or includes, the excess untaxed roll-over amount is taken to be received in a temporary budget repair levy year (14 May 2014) Superannuation (Excess Untaxed Roll over Amounts Tax) Amendment (Temporary Budget Repair Levy) Bill 2014

Superannuation (Excess Non-concessional Contributions Tax) Amendment (Temporary Budget Repair Levy) Bill 2014
A Bill for an Act to amend the Superannuation (Excess Non-concessional Contributions Tax) Act 2007, and for related purposes (14 May 2014) Superannuation (Excess Non-concessional Contributions Tax) Amendment (Temporary Budget Repair Levy) Bill 2014

Superannuation (Departing Australia Superannuation Payments Tax) Amendment (Temporary Budget Repair Levy) Bill 2014
A Bill for an Act to amend the Superannuation (Departing Australia Superannuation Payments Tax) Act 2007, and for related purposes (15 May 2014) Superannuation (Departing Australia Superannuation Payments Tax) Amendment (Temporary Budget Repair Levy) Bill 2014

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