Australia: Superannuation & Funds Management - What's News - 20 October 2014

Last Updated: 28 October 2014
Article by Jenny Willcocks

Most Read Contributor in Australia, September 2016

In the media

RG146 "insufficient" on tax education: IPA
MEDIA – 16 October 2014 – The Institute of Public Accountants (IPA) said that the current education requirements for advisers on taxation law are insufficient and expressed concern at the exemption for advisers who belong to a professional association. More...

Government moves to repeal super pay slip disclosure rules
MEDIA – 16 October 2014 – The government is moving to repeal a law requiring employers to disclose on employee pay slips the amount of superannuation contributed and the date at which the contribution will be made. This move, however, will not remove super contributions from pay slips, as this requirement is enshrined in the Fair Work Act 2009. All it means is employers will no longer need to specify the date they will actually make the payment. More...

Super system ranked second in the world
MEDIA – 15 October 2014 – Australia's retirement income system is second only to the Danish system, according to a new study by Mercer. The 2014 Melbourne Mercer Global Pension Index saw Australia jump from third place to second globally, leapfrogging the Netherlands for the first time in five years. More...

Industry funds getting desperate
MEDIA – 15 October 2014 – Retail funds should be banned from providing default super to employers who bank with them, according to Industry Super Australia (ISA) chief executive David Whiteley. He also argued they should also be banned from paying shareholder dividends until they have delivered median returns to members. More...

ISA urges Murray Inquiry to strengthen default super safety net
MEDIA – 15 October 2014 – ISA's supplementary submission to the Financial System Inquiry proposes that the existing safety net be extended in two ways: Prohibit banks or related entities from providing default super fund services to employees where the bank is the main banking provider to the employer; and Permitting retail and bank-owned funds to pay dividends to shareholders only when they have delivered median returns to their default fund members. More...

Bank owned MySuper untested for super safety net
MEDIA – 13 October 2014 – ISA has advised the Financial System Inquiry that bank-owned MySuper products are no substitute for a default super safety net that protects workers who do not choose their own super fund. An estimated eight in ten employees do not select their own super fund and rely on the employer default fund. More...

Super must be included on workers' pay slips
AIST – 10 October 2014 – In a response to a Treasury paper on the Government deregulation Bill, AIST argues that superannuation is an increasingly substantial component of an employee's total remuneration and must be included on payslips. More...

Reforming the Superannuation Excess Non-concessional Contributions Tax
THE TREASURY – 10 October 2014 – The exposure draft legislation and draft explanatory memorandum give effect to the 2014-15 Budget measure to allow individuals the option of withdrawing superannuation contributions in excess of the non-concessional contributions cap made from 1 July 2013 and associated earnings, with these earnings to be taxed at the individual's marginal tax rate. More...

Industry joins forces to address life insurance
AFA – 9 October 2014 – The Association of Financial Advisers (AFA) and the Financial Services Council (FSC) will jointly convene a working group to specifically address retail life insurance product structures and distribution practices. An independent chair will be appointed to convene the working group and facilitate industry and policy solutions. More...

Higher standards needed for life insurance industry
ASIC – 9 October 2014 – An ASIC review of life insurance advice has found that the industry needs to improve the quality of advice and ensure that the interests of consumers are given priority. ASIC's review of (AFS) licensees found that 63% were compliant. However, more than one third (37%) of the advice consumers received failed to comply with the laws relating to appropriate advice and prioritising the needs of the client. More...

Damning ASIC report confirms Australians need more consumer protection and stronger FOFA laws
ISA – 9 October 2014 – Today's release of ASIC's damning review into life insurance advice provides the clearest evidence yet as to why FOFA laws should be further strengthened and not weakened. "ASIC's review highlights "an unacceptable level of failure" by sales-driven financial advisers offering inappropriate advice that does not put the best interest of consumers first. More...

APRA spells out is expectations of boards of financial institutions
GOVERNANCE INSTITUTE – 8 October 2014 – APRA undertook a stock take of its requirements of boards and the guide is intended to ensure that its boards are clear as to the regulator's requirements, which it states "properly recognise the respective roles of the board and management". More...

LGS to quit coal stake: report
MEDIA – 7 October 2014 – The Local Government Super fund (LGS) has decided to abandon coal mining investments, readying to sell its $25 million worth of shares in coal companies. The policy will see $15m worth of AGL Energy and Whitehaven Coal stock hived off, among other assets. More...

Divestment campaign starts to bite
MEDIA – 7 October 2014 – Australian National University is divesting from a range of companies on environment and social grounds. Local Government Super, HESTA, UniSuper and University of Sydney have also recently moved out of coal. More...

A better Australia: $5 billion Asset Recycling Initiative
AUSTRALIAN GOVERNMENT – 7 October 2014 – Under this program, the government will provide incentive payments of 15% of the sale price of privatised assets sold to state and territory governments, on the condition that the proceeds of such sales are reinvested in new productivity-enhancing infrastructure. More...

Transcript of speech, National Press Club
NATIONAL PRESS CLUB – 15 October 2014 – David Whiteley, ISA Chief Executive, Industry Super Australia, discusses Superannuation - a national asset, The Right Direction, Investing in the Real Economy, and strengthening the Default Safety Net. More...

Future Fund Portfolio Update at 30 September 2014
FUTURE FUND – 15 October 2014 – Following the completion of its usual end of year process the Future Fund today reported on its final outcome for the portfolio as at 30 June 2014. The Fund also provided an update on the portfolio as at 30 September 2014. More...

APRA: further consultation on risk management
APRA – 7 October 2014 – APRA has released a further consultation on Prudential Standard CPS 220 Risk Management (CPS 220) See Prudential practice guide Prudential Practice Guide CPG 220 Risk Management and Prudential standard Prudential Standard CPS 220 Risk Management (mark-up version).

ASFA Submissions

30 September 2014 – Submission to AUSTRAC: Use of Document Verification Service for customer identification and verification.

29 September 2014 – Submission: Review of retirement income stream regulation.

[Draft] Tax and Superannuation Laws Amendment (2014 Measures No. 7) Bill 2014: Excess non-concessional superannuation contributions tax reforms
The exposure draft legislation and draft explanatory memorandum give effect to the 2014-15 Budget measure to allow individuals the option of withdrawing superannuation contributions in excess of the non-concessional contributions cap made from 1 July 2013 and associated earnings, with these earnings to be taxed at the individual's marginal tax rate. This measure delivers on the Government's election commitment to develop an appropriate process that addresses inadvertent breaches of the contribution caps where the error would result in a disproportionate penalty. 10 October 2014 (Opened for submissions) / 24 October 2014 (Submissions close). More...

[Draft] Tax and Superannuation Laws Amendment (2014 Measures No. 7) Bill 2014: Exploration development incentive
The attached exposure draft legislation would amend the income tax law to implement the Government's election commitment to provide an Exploration Development Incentive. Accompanying this draft is explanatory material to explain the operation of the proposed law. The proposed Exploration Development Incentive would be available to Australian-resident investors in small mineral exploration companies. Under the incentive, investors may be entitled to the EDI tax offset or additional franking credits where the company in which they are a member issues them an exploration credit. Companies may issue exploration credits to their shareholders up to a capped amount in an income year, with the cap for a company based on the company's exploration expenditure and tax loss for the relevant income year, adjusted by a modulation factor to ensure that the total value of credits provided in respect of an income year does not exceed $25 million in respect of 2014-15, $35 million for 2015-16 and $40 million for 2016-17. 10 October 2014 (Opened for submissions) / 24 October 2014 (Submissions close). More...

This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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