Australia: Superannuation & Funds Management - What's News - 5 November 2014

Last Updated: 9 November 2014
Article by Jenny Willcocks, Adeline Hiew and Anne MacNamara

Most Read Contributor in Australia, September 2016

In the media

Super fund growth dips in September
MEDIA – 30 October 2014 – Super fund growth fell by 0.6% in September, bringing the median growth for the 2014/2015 financial year down to 1.6%, according to SuperRatings. Australian superannuation fund's "large weighting to Australian shares" was the biggest driver of the fall for super funds, with the "median Australian shares option falling 4.3%" in September. More...

Unlisted investments open to fraud – APRA
MEDIA – 29 October 2014 – Unlisted and opaque investments undertaken by superannuation funds have been listed by the Australian Prudential Regulation Authority (APRA) as being characteristic of being open to fraud. More...

ASIC eyes post FOFA civil actions
MEDIA – 29 October 2014 – The corporate regulator is preparing to take advantage of new enforcement options opened up by the Future of Financial Advice reforms. More...

APRA releases group insurance best practice guide
MEDIA – 30 October 2014 – APRA has released the final prudential practice guidelines providing guidance on good practices for insurers in relation to group insurance arrangements. On the tender process, it provides guidance on claims philosophy, sustainability, service agreements, outsourcing, monitoring the RSE licensee and other relationships, and responding to a tender. More...

Cost of handling super complaints declines
MEDIA – 28 October 2014 – While some other fees and charges have continued to rise across the superannuation industry, the average cost of dealing with complaints actually decreased last financial year, according to the Superannuation Complaints Tribunal (SCT). More...

Release findings on all super fees, says AIST
MEDIA – 27 October 2014 – APRA needs to disclose the fees of all default superannuation funds and not focus solely on those paid in MySuper products, argues the Australian Institute of Superannuation Trustees (AIST). More...

An enhanced public register of financial advisers
GOVERNMENT – 24 October 2014 – The Government announces it is delivering on commitment to establish an enhanced industry-wide public register of financial advisers. This register of financial advisers will enable investors, employers and ASIC to verify the credentials of financial advisers and be confident that they are appropriately qualified and experienced. More...

Government response to Senate inquiry into the performance of ASIC
GOVERNMENT – 24 October 2014 – The Government has considered all of the 61 recommendations made by the Senate Economics Committee inquiry into the performance of the ASIC and today released its response to those recommendations. Specifically, ASIC has agreed to establish an Office of the Whistleblower within ASIC to improve the way it deals with whistleblowers. More...

Employers: Remember to pay the new super guarantee rate
MEDIA – 23 October 2014 – Ahead of the first quarterly payment under the new rate, the ATO is reminding employers of the increase to the compulsory minimum super payments they make on behalf of eligible employees. More...

APRA urged to shed light on fees charged by non-MySuper default funds
MEDIA – 23 October 2014 – Australian Institute of Superannuation Trustees (AIST) today called on APRA to prioritize disclosure of all fees paid on default superannuation accounts, not just those paid on MySuper products. More...

ASIC lays out 2014/2015 strategy
MEDIA – 21 October 2014 – The corporate regulator has pointed to a number of "key risks" in its 2014/2015 strategic outlook that will drive its activities over the next 12 months. Structural changes in the financial system through the increase in assets held in superannuation (including SMSFs) are magnifying the risk of poor advice. More...

Industry super funds performance reinforces case for strong default safety net
INDUSTRY SUPER AUSTRALIA – 21 October 2014 – Commission-free industry super funds again outperformed retail super funds on average over all time periods, according to monthly data from SuperRatings, based on balanced fund median rolling returns to 30 September 2014. More...

SuperRatings: latest returns
SUPERRATINGS – 30 October 2014 – The following chart and table shows the performance of key SuperRatings' investment options. More...

AUSTRAC's proposed changes to the annual compliance report – industry consultation
GOVERNMENT – 30 October 2014 – The consultation has been extended for four weeks until Friday, 28 November 2014. More...

APRA Prudential Practice Guide LPG 270 Group Insurance Arrangements (LPG 270)
APRA – 30 October 2014 – Topics covered in LPG 270 include the identification of risks in accordance with an insurer's risk management framework, responding to tenders and data management. LPG 270 also discusses the implications of Prudential Standard SPS 250 Insurance in Superannuation for insurers. More...

APRA Draft Prudential Practice Guide SPG 223 Fraud Risk Management (SPG 223)
APRA – 27 October 2014 – This outlines prudent practices in relation to the management of fraud risk, and focuses on current and emerging fraud risk factors impacting the superannuation industry from both an internal and external perspective. Draft SPG 223 substantially updates and expands upon APRA's existing fraud risk guidance. Submissions on draft SPG 223 by Monday 19 January 2015. More...

APRA new and amended FAQ on superannuation reporting standards
APRA has released one new and one amended FAQ on superannuation reporting standards (23 October 2014). More...

ASFA submissions – 21 October 2014

Submission to ASIC: Draft Class Order – Disclosure of fees for superannuation trustees and managed investment scheme responsible entities.

Submission to Treasury: Tax and Superannuation Laws Amendment (2014 Measures No. 7) Bill 2014: Providing certainty for superannuation fund mergers.

Submission to Treasury: Capital Gains Tax Exemption for Compensation and Insurance.

ATO: Remember to pay the new super guarantee rate
The super guarantee rate increased from 9.25% to 9.5% as of 1 July this year. Small businesses are encouraged to use the ATO's free Small Business Superannuation Clearing House service to help meet their super guarantee obligations. The Small Business Superannuation Clearing House lets you pay your superannuation contributions in one transaction, to a single location; helping to make the process easier (23 October 2014).


Munday v Commonwealth of Australia (No 2) [2014] FCA 1123
HUMAN RIGHTS – Discrimination – disability – discrimination alleged in conduct of Commonwealth program regarding early release of superannuation on compassionate grounds – early release of superannuation sought by second applicant to pay for in-vitro fertilisation (IVF) treatment overseas on the basis that it was necessary to alleviate acute or chronic depression – IVF treatment would involve paying for ova – first application rejected because decision-maker was not satisfied that IVF was necessary to alleviate second applicant's depression or that she lacked the financial capacity to meet the expense arising from the proposed treatment by other means – second application rejected because decision-maker was not satisfied that IVF was necessary to alleviate second applicant's depression and also because superannuation funds would be used for a purpose that was not permitted under Australian law – requirement of lawful purpose not specified inSuperannuation Industry (Supervision) Act 1993 (Cth) or Superannuation Industry (Supervision) Regulations 1994 (Cth) – whether imposition of this requirement involved unlawful discrimination on the basis of second applicant's disability (infertility) – whether failure to obtain independent legal advice before imposing this requirement involved a failure to make a reasonable adjustment – Disability Discrimination Act 1992 (Cth), ss 5 and 6. More...

Wilson and Commonwealth Superannuation Corporation [2014] AATA 795
DEFENCE – Defence Force Retirement and Death Benefits – applicant retired from army – whether applicant should have been retired on medical grounds due to posttraumatic stress disorder – insufficient evidence to show applicant suffering posttraumatic stress disorder on discharge – decision under review affirmed Defence Force Retirement and Death Benefits Act 1973 (Cth) ss 26, 30, 37, 99(4). More...



Anti-Money laundering and Counter-Terrorism Financing Act 2006 (Act 169/2006)
Proposed amendment by Freedom of Information Amendment (New Arrangements) Bill 2014 and Counter-Terrorism Legislation Amendment (Foreign Fighters) Bill 2014.

Counter-Terrorism Legislation Amendment Bill (No. 1) 2014
29/10/14 302R1013 – Attorney-General George Brandis second reading speech introducing the legislation. More...

The Treasury Legislation Amendment (Repeal Day) Bill 2014 implements a range of improvements to Australia's laws and removes costly and unnecessary red tape
Schedule 1 amends the Superannuation Industry (Supervision) Act 1993 to repeal the payslip reporting provisions. Under the Fair Work Act, employers are already required to report details of employee superannuation entitlements that accrued during a particular pay period on an employee's payslip. Repealing the payslip reporting provisions will save employers from investing in major upgrades in their payment system software with minimal benefit to their employees. Schedule 2 simplifies taxation laws by consolidating duplicated provisions from various taxation Acts into a single set of provisions, repealing spent or redundant taxation laws, and moving longstanding regulations into the primary law. More...

The Commonwealth Government "Spring Repeal Day" on 29 October 2014
The Federal Government will introduce changes as part of the second phase of its red tape reduction strategy, aimed at cutting regulation by $1 billion a year. The bills are to be debated on "Repeal Day", 29 October 2014. Changes include:

Company directors will no longer have to hold a general meeting on the request of at least 100 voting members under draft laws about to go to parliament. The requirement will be replaced with a threshold shareholding of 5% of voting shares changes to corporations laws will also remove the obligation for companies limited by guarantee with revenue of less than $1 million to appoint an auditor. (21 October 2014)

The Corporations Legislation Amendment (Deregulatory and Other Measures) Bill 2014 removes unnecessary regulation, clarifies existing regulatory obligations and enhances the efficient operation of certain Government bodies by:

exempting certain companies limited by guarantee from the need to appoint or retain an auditor

clarifying the circumstances in which a financial year may be less than 12 months.

The measures contained in the Corporations Legislation Amendment (Deregulatory and Other Measures) Bill 2014 are estimated to reduce business compliance costs by around $14 million per year. The Treasury portfolio will continue to deliver on initiatives which increase productivity by removing unnecessary duplication in regulatory arrangements. (22 October 2014). 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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