In the media
Growing retiree numbers highlight the importance of
using retirement planning tools: ASFA Retirement Standards December
Quarter
ASFA – 6 March 2015 – With the Intergenerational
Report showing an increase in the number of retirees and predicting
people will live longer in retirement than ever before, the ASFA
says it is important people use tools like the ASFA Retirement
Standard to help plan how they will fund their retirement years. More...
LegalSuper boss says unlawful bank spruiking
"widespread"
MEDIA – 6 March 2015 – The head of an industry
superannuation fund says the unlawful practice of banks offering
businesses special inducements to become their default super
provider is widespread.
More...
Intergenerational Report points to super
issues
MEDIA – 5 March 2015 – The 2015 Intergenerational
Report has pointed to consequences for the superannuation tax
regime and income streams.
More...
Super billions the key to infrastructure investment and
a more productive economy
INDUSTRY SUPER AUSTRALIA – 5 March 2015 – Global and
domestic infrastructure investors should team up with governments
to help explain to the general community the challenges and
opportunities of long term public-private partnerships in funding,
financing and operating critical infrastructure, says Industry
Super Australia.
More...
Excess super contribution tax amendments
passed
MEDIA – 5 March 2015 - The Federal Government has passed
legislation through Parliament to remove punitive tax rates on
excess superannuation contributions. Individuals can now take out
from super an amount equal to their super contributions in excess
of non-concessional contributions cap and an additional 85% of
related earnings amount.
More...
APRA identifies industry fund market
power
MEDIA – 5 March 2015 – Industry superannuation funds
control substantial market power in the group life insurance space
and have seen fit to wield it, according to an assessment by
Australian Prudential Regulation Authority (APRA)
deputy chairman, Ian Laughlin.
More...
Questionable life practices outed by APRA
MEDIA – 5 March 2015 – Life insurance companies have
too often adopted questionable practices because they have been
driven to score well in product ratings to attract business from
advisers, according to an Australian Prudential Regulation
Authority (APRA) senior executive.
More...
ECT reforms pass Senate
MEDIA – 5 March 2015 – The Parliament has passed the
latest amendments to the superannuation excess contribution tax
(ECT), implementing the final piece of legislation
to reform the unpopular tax, says Taxpayers Australia Limited. It
still imposes penalties on those who make deliberate choices to
exceed the caps, but allows greater flexibility and an ability to
correct mistakes. More...
Productivity Commission to explore financial services
reports
MEDIA – 5 March 2015 – The government has announced a
Productivity Commission review aimed at boosting Australia's
services exports across financial services and other industries.
While services account for approximately 70% of the Australian
economy, they represent only 20% of Australia's total exports.
More...
"Unethical culture" threatening
industry
MEDIA – 5 March 2015 – The CFA Institute has
identified poor ethical frameworks within financial services firms
as a key obstacle to restoring consumer confidence.
More...
Intergenerational Report confirms the need for financial
advice for all Australians
FINANCIAL PLANNING ASSOCIATION OF AUSTRALIA – 5 March 2015
– With the release of the Intergenerational Report
(IGR), the FPA is once again calling for
Australians to seek quality financial advice, particularly in light
of our ageing population and the fact that, as a nation, our life
expectancy is among the longest in the world.
More...
2015 Intergenerational report: Australia in
2055
TREASURY – 5 March 2015 – The Government will consider
several aspects of the superannuation system as part of the review
of the tax system. The Government is also considering improving the
way in which the superannuation system transforms savings into
retirement income streams.
More...
Cutting red tape for Australian companies
TREASURY – 4 March 2015 – Parliament has passed the
Corporations Legislation Amendment (Deregulatory and Other
Measures) Bill 2014 which includes a number of red tape-cutting
reforms to the Corporations law.
More...
CFA: Financial services employers urged to address
confidence issue with ethical leadership
MEDIA – 4 March 2015 – The financial services industry
in Australia is at a turning point and the crisis of trust must be
addressed now, with leadership from the top, according to the CFA
Institute. While reforms such as FoFA have improved transparency,
legislation alone is never enough to guarantee that all investment
professionals will act in their clients' best interests.
More...
Big banks accused of offering inducements to win super
accounts
MEDIA – 3 March 2015 – Australia's big banks are
accused of offering special inducements to businesses to encourage
them to switch the default superannuation fund used for the
retirement nest eggs of their employees.
More...
Statement by Glenn Stevens, Governor: Monetary Policy
Decision
RBA – 3 March 2015 – At its meeting today, the Board
decided to leave the cash rate unchanged at 2.25%. More...
Global investment experts look to Australia for
infrastructure solutions
INDUSTRY SUPER AUSTRALIA – 3 March 2015 –
International and Australian infrastructure investment experts will
converge on Canberra this week to discuss breakthrough proposals to
connect long term savings with much needed global and domestic
infrastructure, at a two day symposium – Innovations in
Infrastructure: Beyond G20.
More...
Australian Private Equity and Venture Capital
Association Ltd (AVCAL) submissions
AVCAL – 3 March 2015 – Submissions sent
to:
Australian Securities and Investments Commission – commenting on proposed revisions to RG 97. More...
Austrade – submission relates to the second round of stakeholder consultations concerning proposed changes to the Significant Investor Visa (SIV) and the development of the new Premium Investor Visa (PIV). More...
ISA Briefing Note: Bank cross-selling to employers: A
threat to Australia's super safety net
INDUSTRY SUPER AUSTRALIA – 2 March 2015 – What
successive inquiries said about the risk of banks providing super
services to employers. What the law says about cross-selling
activity involving superannuation products. Research into bank
bundling service offers to small and medium-sized employers.
More...
Banks under fire on super deals
MEDIA – 1 March 2015 – The survey by UMR Research
reveals that the four banks –Commonwealth Bank, Westpac,
National Australia Bank and ANZ Bank – offered businesses
inducements including free tickets to sporting events, lower
insurance premiums and cheaper interest rates on business
overdrafts if employers switched staff default super funds to the
bank's retail funds.
More...
Reform of super inequity needed
CPSA – 26 February 2015 – The current super tax system
is inherently inequitable, disproportionately benefiting the rich,
while people slogging it out on low incomes end up paying more tax
than if it went into their pay. The top 10% of income earners
receive 31.8% of the benefits of super tax breaks while the bottom
60% receive just 27.2% of the concessional benefits and that's
simply not fair.
More...
FSC gears up for super tax debate
MEDIA – 26 February 2015 – New FSC boss Sally Loane
has called on the government to maintain favourable tax treatment
for "all members of superannuation funds" in its
much-anticipated tax white paper.
More...
APRA chief Wayne Byres flags financial planning
penalties
MEDIA – 26 February 2015 – The APRA has told banks to
review risks that may be lurking in their financial planning
divisions and warned penalties could be imposed if their business
culture is found to be deficient. APRA is examining the scandal at
National Australia Bank to determine whether it reflected poor
governance and risk management more broadly.
More...
ADF chief expresses "preference" for better
military superannuation deal
MEDIA – 26 February 2015 – Air Chief Marshal Mark
Binskin expresses his "preference" for military personnel
to get a better deal under a new superannuation scheme which will
deliver greater contributions during war-like service.
More...
Government to strengthen Australia's foreign
investment framework
TREASURY – 25 February 2015 – The Commonwealth
Government will take action to strengthen Australia's foreign
investment framework for residential real estate and agriculture.
The Options Paper sets out for consultation the reforms that the
Government proposes to implement to improve compliance and
enforcement of the rules for foreign investment in residential real
estate.
More...
Westpac, Count on ASIC radar over complex product
advice
MEDIA – 24 February 2015 – Westpac and Commonwealth
Bank-owned Count Financial are among the 10 licensees forced to
undertake corrective action following concerns by the Australian
Securities and Investments Commission (ASIC)
concerns about financial advice relating to complex products. More...
Strengthening Australia's foreign investment
framework – Consultation Paper
TREASURY – 25 February 2015 – The Government is
seeking views on proposed reforms to strengthen Australia's
foreign investment framework, particularly around residential real
estate and agriculture. This discussion paper forms the basis of
the Government's consultation on reforms to the foreign
investment framework.
More...
Murray Report: Consultation process
GOVERNMENT – 7 December 2014 – The Government is
consulting on the Inquiry's recommendations before making any
decisions, and is calling for written submissions from all
stakeholders. The deadline for submissions is 31 March 2015. More...
Submissions: Fairer Taxation of Excess Non-Concessional
Contributions Reforms Regulations: Exposure draft
A new exposure draft regulation and draft explanatory statement
would make changes to regulations to implement the Fairer Taxation
of Excess Non-concessional Contributions reforms. Submissions close
on 18 March 2015.
More...
CP 227 Disclosure and reporting requirements for
superannuation trustees: s29QC
Released 19 December 2014 / Comments close 13 March 2015.
More...
Cases
Friar v Brown [2015] FCA 135
SUPERANNUATION – review of a decision of the Superannuation
Complaints Tribunal by Federal Court – whether Tribunal erred
in concluding that the applicant (the sister of the deceased
member) and the deceased did not have an interdependency
relationship. Court held the Tribunal had not erred at law but did
not accept that "an interdependency
relationship can never be established in a household where siblings
live together" and one is married and lives with a spouse.
Will always depend on the circumstances. Superannuation
Industry (Supervision) Act 1993 (Cth) ss 10, 10A.
Superannuation (Resolution of Complaints) Act 1993 (Cth)
ss 37, 46. Superannuation Industry (Supervision) Regulations
1994 (Cth) rr 1.04AAAA, 6.22. More...
Legislation
Commonwealth
Bills Progress
Tax and Superannuation Laws Amendment (2014 Measures No.
7) Bill 2014
Schedule 1 to the Tax and Superannuation Laws Amendment (2014
Measures No. 7) Bill 2014 (Bill) amends the Income Tax
Assessment Act 1997 (ITAA 1997) and the Taxation
Administration Act 1953 (TAA 1953) to make the taxation
treatment of individuals with excess non-concessional
superannuation contributions fairer. 24/2/2015 Representatives:
Second Reading Debate. 3/3/2015 Read a third time, passed all
stages and awaiting assent.
More...
Tax and Superannuation Laws Amendment (2014 Measures No.
5) Bill 2014
Representatives 3/3/2015 Bill passed all stages and awaiting
assent.
More...
Treasury Legislation Amendment (Repeal Day) Bill 2014
Schedule 1 to this Bill amends the Superannuation Industry (Supervision) Act 1993 to repeal the payslip reporting provisions. This Schedule does not make any policy changes. No changes in the application of law to any taxpayer will result from these changes. Schedule 3 to this Bill amends the Financial Sector (Shareholdings) Act 1998 so that where the associate of the person does not have a direct control interest in a financial sector company, it is no longer necessary to include the associate's interest with the aggregate direct control interest held by a person. 25/02/2015 Assented. See Act No .2 2015. 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.