In the media
PC urges consolidation to avoid super
loss
MEDIA – 30 March 2017 - Addressing the proliferation of
consumers holding multiple default superannuation accounts through
consolidation and reform could increase individual super balances
by $25,000 at retirement, according to the Productivity Commission.
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Productivity Commission releases draft
report
TREASURY – 29 March 2017 - The Minister for Revenue and
Financial Services, notes the release today of the Productivity
Commission's draft Stage Two report, Superannuation:
Alternative Default Models. The draft report outlines four possible
alternative models for allocating default superannuation and
highlights that the current default model is not working to
maximise benefits for members, including their retirement income.
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FSC backs Productivity Commission's call for a more
competitive default superannuation market
FSC – 28 March 2017 - The Financial Services Council (FSC)
supports the Productivity Commission's view that reform of the
default superannuation system is necessary to significantly improve
people's retirement savings.
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FPA advocates for affordable financial
advice
MEDIA – 28 March 2017 - In a pre-budget submission to Federal
Government, the Financial Planning Association of Australia (FPA)
is recommending that the preparation of an initial financial plan,
and ongoing management fees or annual retainer fees, should be tax
deductible. Currently, a fee for service arrangement for the
preparation of an initial financial plan is stated by the
Australian Taxation Office to be not tax deductible under section
8-1 of the Income Tax Assessment Act 1997.
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Govt blocks estate planning options within
CIPRs
MEDIA – 28 March 2017 - The Federal Government has moved to
ensure that it closes off estate planning options within its
changes to post-retirement income stream products. The Government
has opened the consultation period around the draft legislation
intended to interim the new post-retirement income stream regime.
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ASIC establishes Financial Advisers Consultative
Committee
ASIC – 28 March 2017 - ASIC today announced the establishment
of the Financial Advisers Consultative Committee, designed to
improve industry engagement with its regulator, and revealed its
initial membership.
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Banks urge tougher conditions for planning
licensees
MEDIA – 28 March 2017 - The Australian Bankers'
Association (ABA) has urged much more onerous requirements for
financial planning licensees. In a submission to the Senate
Economic Committee inquiry into consumer protection in the banking,
insurance and financial sector, the ABA has argued that the ASIC
should consider whether the capital requirements imposed on advice
licensees remain sufficient.
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AIST announces 2017 Board
AIST – 23 March 2017 - The Australian Institute of
Superannuation Trustees (AIST) has today announced its 2017 Board
which includes the addition of one new board member and the
re-election of four others.
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ASFA urges ATO funding increase
MEDIA – 23 March 2017 - The Association of Superannuation
Funds of Australia (ASFA) has called on the government to boost
funding to the Australian Taxation Office (ATO) for auditing
businesses around super guarantee (SG) compliance, following
industry reports revealing the extent to which employers have
short-changed workers on super.
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Untested super proposals focused on wrong
target
ISA – 21 March 2017 - The Productivity Commission is
proposing untested changes to superannuation that could over time
undermine the best-performing parts of the system while failing to
address the cost and poor performance of retail funds.
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AFA call to open up data to secure super
MEDIA – 20 March 2017 - The Association of Financial Advisers
(AFA) has identified data sharing as a key component to resolve
non-payment of the superannuation guarantee (SG) by many Australian
employers, and has called for non-compliant businesses to be fined
for not paying adequate super contributions.
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Superannuation: alternative default models - draft
report
Productivity Commission: 29 March 2017
This Productivity Commission inquiry is aimed at developing
alternative models for a formal competitive process for allocating
default superannuation fund members to superannuation products.
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AVCAL submission: Submission: Foreign Investment
Framework
AVCAL has lodged a submission in relation to proposed changes to
the foreign investment framework outlined in the Australian
Government's Consultation Paper, March 2017. The submission
focuses on the Government's proposals to: 1) improve the
processing of low sensitivity business investment; and 2) simplify
the Foreign Investment Review Board (FIRB) application fee
framework. The full submission can be read here.
ISA Submission: Submission to Senate Economics Committee
inquiry into non-payment of the Superannuation
Guarantee
ISA's submission to the Senate Economics Committee inquiry into
non-payment of the Superannuation Guarantee (SG) uses ATO tax file
data for 2013-14 to estimate the extent of SG non compliance.
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The Australian superannuation industry
Ross Clare, Director of Research, ASFA; Andrew Craston, Senior
Research Advisor, ASFA Research and Resource Centre: March 2017.
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Call for submissions on Insurance in Superannuation
Working Group (ISWG) discussion paper
The Insurance in Superannuation Working Group (ISWG) today released
the
first of a series of discussion papers as a first step towards
extending the Life Insurance Code of Practice to superannuation
trustees.
More...
ASFA: Development of the framework for Comprehensive
Income Products for Retirement: discussion paper
The Government has released a discussion paper exploring key policy
issues to facilitate further development of a framework for the
retirement phase of the superannuation system (Comprehensive Income
Products for Retirement, or MyRetirement products). The discussion
paper is available on the
Treasury Consultation Hub. Written submissions are due by 28
April 2017.
Cases
Mills and Commissioner of Taxation (Taxation) [2017] AATA
362
TAXATION –– superannuation – excess contributions
tax – whether non-concessional excess contributions can be
disregarded or allocated to another financial year – whether
special circumstances - decision under review affirmed.
Re AGW Funds Management Limited [2017] VSC
124
TRUSTS AND TRUSTEES – Application by solvent responsible
entity of three managed investment schemes for judicial advice
– Supreme Court (General Civil Procedure) Rules
2005, r 54.02. TRUSTS AND TRUSTEES – Judicial advice
– Scope of advice proceeding – Court's power
discretionary.
Legislation - Commonwealth
People of Australia's Commission of Inquiry (Banking and
Financial Services) Bill 2017
Registered 27/03/2017; Introduced HR 27/03/2017
The purpose of the Bill is to fully expose and shine the light of
public scrutiny on the unethical and unlawful conduct/practices in
the banking and financial services industries and to put forward
recommendations for reform, through a Commission of Inquiry
established by the Bill.
Banking and Financial Services Commission of Inquiry Bill
2017
Registered 27/03/2017; Introduced Senate 22/03/2017
This Bill seeks to ensure that the extent of misconduct with the
banking and financial services sector is exhaustively examined and
that the impact on victims of misconduct is fully understood. This
Bill appoints a Commission to establish the causal factors for this
misconduct, including misaligned incentives, culture, inadequate
regulation and regulatory power, and 'moral hazard'
extending from government guarantees.
Regulations
ASIC Corporations (Repeal and Transitional) Instrument
2017/271
30/03/2017 - This instrument operates to repeal ASIC Class Order
[CO 04/526] while providing transitional relief to extend its
effect for two years.
ASIC Corporations (Foreign Financial Services Providers - Limited
Connection) Instrument 2017/182
27/03/2017 - This instrument temporarily extends the effect of ASIC
Class Order [CO 03/824] in its existing form until 27 September
2018.
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.
