Australia: Superannuation & Funds Management - What's News - 17 June 2014

In the media

Treasury uncertain on default numbers
MEDIA – 12 June 2014 – The Federal Treasury has admitted it does not know how many default superannuation funds will ultimately be attached to industrial awards under the process currently stalled in the Fair Work Commission. More...

Government mulls next move in FWC saga
MEDIA – 11 June 2014 – A Federal Court decision over the validity of the Fair Work Commission's (FWC) expert panel was proof the default superannuation review process could not continue without government intervention, according to the Employment Minister. More...

FWC halts default super review
MEDIA – 11 June 2014 – The Fair Work Commission (FWC) has said it will halt its selection of MySuper funds as default funds under modern awards, after the full Federal Court found the expert panel was incorrectly constituted. The reconstitution of the Expert Panel is now in the hands of the Employment Minister. More...

Remove superannuation from awards to fix Labor's mess
AUSTRALIAN MINES AND METALS ASSOCIATION – 11 June 2014 – Australia's resource industry employer group AMMA is calling for superannuation to be removed from industrial awards as retail and industry superannuation funds continue to battle over which should be the default for award-covered employees. More...

FOS apologises to member as part of case settlement
MEDIA – 10 June 2014 – The Financial Ombudsman Service (FOS) has apologised to a member of the service as part of the settlement of a case brought by FOS against the member. More...

Federal Court declares Fair Work Commission Expert Panel invalid
FSC – 06 June 2014 – The Full Federal Court upheld a challenge by the Financial Services Council and determined that the Fair Work Commission Expert Panel for the selection of MySuper default funds in Modern Awards is invalid. The Federal Court declared that the decision by the President of the FWC to appoint himself to the Expert Panel is not valid; the Expert Panel is not correctly constituted and lacked the number of superannuation experts required by law. More...

Bank owned super funds fail in Federal Court to remove default fund quality filter
INDUSTRY SUPER AUSTRALIA – 06 June 2014 – Industry Super Australia said The Financial Services Council (FSC) representing bank owned superannuation funds have failed today to remove the quality filter on default superannuation. The Federal Court has found that the Fair Work Commission (FWC) process for default fund selection – which ensures default funds are chosen on merit – will stand. More...

Penalties not harsh enough: ASIC
MEDIA – 04 June 2014 – Penalties for financial planners who breach the law are not severe enough, the Australian Securities and Investments Commission (ASIC) believes. More...

Asset sales a good match for superannuation funds
ASFA – 03 June 2014 – The Queensland Government's proposal to offer the Gladstone and Townsville ports for lease, along with the sale of other assets, will provide attractive investments for superannuation funds, according to the Association of Superannuation Funds of Australia (ASFA). More...

Baby Boomers super confidence threatened by constant rule changes – new REST research shows
REST SUPERANNUATION – 02 June 2014 – Aussie Baby Boomers are in danger of losing confidence in the stability of Australia's superannuation system with nearly half (or 45%) saying they are concerned by "the constant rule changes". Another 14% say they do not understand the system and a further 9% do not trust it. More...

ASFA Submmissions
ASFA – 13 June 2014 – Submission to The Treasury: Proposed financial industry levies for 2014-15

ISA: Inverted Bid Model
INDUSTRY SUPER AUSTRALIA – 6 June 2014 – Industry Super Australia in conjunction with Complex Program Group, and IFM Investors has developed a new procurement process to support investment in Australian infrastructure by long-term equity investors such as Australian superannuation funds. Download The Inverted Bid Model report here.

AIST submission: National Identity Proofing Guidelines
AIST – 6 June 2014 – The guidelines are silent on the role of TFNs as identifiers, as well as the role of the Australian Taxation Office (ATO) in issuing TFNs. AIST recommends that the role of this identifier be explicitly considered throughout the proposed guide lines in this context. More...

Lodgment of statements by superannuation providers in relation to superannuation plans
COMLAW – 10 June 2014 – Lodgment of statements by superannuation providers in relation to superannuation plans (other than self managed superannuation funds) for each financial year ended 30 June in accordance with the Taxation Administration Act 1953. This instrument describes the lodgment of Member Contributions Statements. More...

Department of Finance: Changing the Schedule for Increasing the Superannuation Guarantee – Regulation Impact Statement
GOVERNMENT – 6 June 2014 – The OBPR has found Treasury to be compliant with the RIS requirements. The RIS was assessed by the OBPR as not consistent with best practice. In particular, the RIS would have benefitted from a more balanced discussion of the business certainty outcomes under the status quo. More...

Cases

Bundaberg Sugar Superannuation Pty Ltd as trustee of the Bundaberg Sugar Ltd Superannuation Plan [2014] QSC 118
Where the trustee of a superannuation fund plan applied for directions as to the proper construction of the trust deed and rules – where accumulation benefits are subject to adjustment by reference to the "Net Earnings" or "Net Earning Rate" of the plan – whether "Net Earnings" and "Net Earning Rate" can be negative

Where an interest amount is to be added or deducted from the amounts payable under the trust deed and rules by reference to the "Net Earning Rate" of the plan – whether the interest rate may, on proper construction of the trust deed, be negative

Where accumulation benefit components of a benefit payable are subject to adjustment for the "Net Earnings" of the plan – whether "Net Earnings" include the unrealised gains or losses in value of the assets of the plan assets Trusts Act 1973 (Qld), s 96. More...

Legislation

Commonwealth

Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2014
This determination relates to the adjustment of superannuation entitlements of separated and divorced spouses, and of separated de facto couples (except in Western Australia). The entitlements are provided under certain orders or agreements that split particular kinds of future superannuation benefits made in property settlements under the Family Law Act 1975. The determination relates to orders or agreements that provide for a base amount split of future superannuation benefits that are payable in respect of a defined benefit superannuation interest or an interest in a self-managed superannuation fund. (13 June 2014) More...

ASIC Class Order [CO 14/541]
This class order exempts RSE licensees from disclosure obligations in section 29QC "Obligation to give consistent information" of the Superannuation Industry (Supervision) Act 1993 until 1 July 2015. (13 June 2014) More...

Superannuation (Productivity Benefit) (Continuing Contributions) Amendment Declaration 2014 (No. 1)
This instrument amends the Superannuation (Productivity Benefit) (Continuing Contributions) Declaration 2013 to directly link employer contributions in the Superannuation (Productivity Benefit) Act 1988 to those set out in the Superannuation Guarantee (Administration) Act 1992. (11 June 2014) More...

Lodgment of returns for the year of income ended 30 June 2014 in accordance with the Income Tax Assessment Act 1936, the Income Tax Assessment Act 1997, the Taxation Administration Act 1953, the Superannuation Industry (Supervision) Act 1993 and the Income Tax (Transitional Provisions) Act 1997
This instrument establishes due dates for lodgment of returns. (10 June 2014) More...

ASIC Class Order [CO 14/425]
This class order amends the ASIC Class Order [CO 10/630] to extend the maximum period of operation for a further 24 months, to allow additional time for the proposed amending regulations to be made. Regulation 7.9.20AA of the Corporations Regulations 2001 require regulated superannuation funds (other than self-managed superannuation funds) to disclose long term performance returns to assist members to understand the long term performance of their superannuation. Registered 26 May 2014. More...

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