In the media
Members should not be stapled to dud funds: AIST
MEDIA - 29 October 2021 - following the release of Choice
super data, the Australian Institute of Superannuation Trustees is
calling for the Government to amend legislation to prevent any
member being stapled to an untested or persistently underperforming
super product. More...
Government meets legislative commitments in response to
Hayne Royal Commission
TREASURY - 28 October 2021 - the Morrison Government has
introduced legislation into Parliament to establish the Financial
Accountability Regime and the Compensation Scheme of Last Resort.
More...
APRA shines light on choice super sector
APRA - 28 October 2021 - the APRA has published analysis
of the performance of choice superannuation products ahead of
releasing its first Choice Product Heatmap in late 2021, which will
provide clear and comparable insights on the performance of choice
products in the areas of investment returns, fees and costs, and
sustainability. More...
Choice products report 40 per cent higher admin fees
than MySuper
MEDIA - 28 October 2021 - administration fees on Choice
products are 40 per cent higher than for MySuper products,
according to the regulator, with a $100,000 balance paying $391 per
annum. More...
APRA urges greater focus on improving governance and
strategic planning in super
APRA - 26 October 2021 - the Australian Prudential
Regulation Authority (APRA) has called on
superannuation trustees to examine how they can improve their
governance and strategic planning after releasing the findings of
multiple reviews of industry business practices. More...
$450 super threshold removed
MEDIA - 28 October 2021 - the Government has introduced a
bill that aims to improve equity in the superannuation system,
allow a larger amount of super to be removed for a first home
deposit, and reduce the eligibility age to make downsizer
contributions. More...
Enhancing the super system and driving business
investment
TREASURY - 27 October 2021 - the Morrison Government has
introduced into Parliament the Treasury Laws Amendment (Enhancing
superannuation outcomes for Australians and helping Australian
businesses invest) Bill 2021. More...
The RIC requires modular retirement products
MEDIA - 27 October 2021 - simple retirement solutions
where members can flexibly change and adapt their investments will
be necessary when superannuation trustees implement the Retirement
Income Covenant. More...
AFCA appoints super senior ombudsman
MEDIA - 26 October 2021 - Anne Maree Howley has been
appointed as senior ombudsman for superannuation, among seven
newly-created ombudsman roles. More...
White Paper on modernising financial advice hits the
right note
21 October 2021 - the SMSF Association welcomes the
Financial Services Council's White Paper on Financial Advice,
saying it aligns with its goals of modernising financial advice and
enhancing the professionalisation of the advice. More...
AFCA to consult on approach to categorising complaints
about financial advice and financial products
AFCA - 21 October 2021 - with the forthcoming release of
the draft Compensation Scheme of Last Resort (CSLR) legislation and
in our regular discussions with the advice sector, AFCA intends to
provide additional clarity to the sector and consumers on how it
currently deals with and categorises these complaints. More...
Expanding intra-fund advice will improve member
retirement outcomes
AIST - 20 October 2021 - expanding intra-fund advice will
improve member retirement outcomes: AIST. More...
Gender pension gap - a worldwide problem that must be
addressed
AIST - 20 October 2021 - Governments and employers must do
more to address the gender pay gap and other employment issues to
improve retirement outcomes for women, the Australian Institute of
Superannuation Trustees (AIST) said. More...
AAT amends Spectrum ban
ASIC - 19 October 2021 - the Administrative Appeals
Tribunal has broadened the corporate regulator's decision to
ban Spectrum Wealth director, Mark Schroeder, from providing
financial services. More...
APRA finalises guidance for new prudential standard on
remuneration
APRA - 18 October 2021 - the APRA has published guidance
to assist banks, insurers and superannuation licensees in meeting
the requirements of the new prudential standard CPS 511
Remuneration. More...
In practice and courts
ASIC Updates
ASIC Corporations (Amendment) Instrument
2021/381
Amends the ASIC Corporations (Auditor Independence)
Instrument 2021/75 and ASIC Corporations (Parent
Entity Financial Statements) Instrument 2021/195 to change the repeal dates from
April 2026 to April 2024.
APRA finalises guidance for new prudential standard on
remuneration
The APRA has published guidance to assist banks, insurers
and superannuation licensees in meeting the requirements of the new
prudential standard CPS 511 Remuneration (CPS
511), which comes into effect from 1 January 2023. The
final Prudential Practice Guide CPG 511 Remuneration released will
assist industry in complying with CPS 511 by setting out guidance
and examples of better practice (18 October 2021). More...
Findings from APRA's superannuation thematic
reviews
APRA: 26 October 2021
The findings of three thematic reviews undertaken over the past 12
months covering: Strategic and business planning; fund expenditure;
and unlisted asset valuation practices. The information paper is
available on APRA's website at: Findings from APRA's superannuation thematic
reviews.
AFCA Current Matters
Business interruption insurance test
cases (Updated October 2021)
Sterling group investors (Updated October
2021)
FSC: Target Market Determination templates
The new Design Distribution and Obligations come into
effect on 5 October 2021, and require product issuers to develop
Target Market Determinations (TMDs) for the
products they issue to retail clients. For more information on the
reforms and the FSC's template TMDs and data standards.
More...
FSC Submissions
19 October 2021 FSC Submission Retirement Income Covenant Exposure
Draft Legislation
19 October 2021 FSC Submission Treasury Consultation on
Occupational Exclusions
Industry Superfunds Submissions - 13 October 2021
Review of occupational exclusions in default
insurance offered through MySuper products
Cases
Re QSuper
Board [2021] QSC 276
SUPERANNUATION - PUBLIC SERVICE FUNDS - OTHER MATTERS - where
the applicant board is a body corporate board created by the
Superannuation (State Public Sector) Act 1990 (Qld) - where
the board administered a scheme established by a deed for the
provision of superannuation benefits from a fund -
where the board acted as the trustee for the fund - where the
individual members of the board are themselves trustees by the same
Act - where the deed can be amended by the board - where the board
owed covenants to act in the best financial interests of its
beneficiaries and prioritise those beneficiaries' interests
over others in the event of a conflict - where, due to amendments
to relevant legislation, the breach of trustee covenants attracted
increased civil penalties under the Superannuation Industry
(Supervision) Act 1993 (Cth) - where the same reforms
prohibited the trustees from obtaining an indemnity or exemption
from such liability from the trust fund - where the applicant
proposed to amend the deed to allow it to remunerate itself from
the trust fund to create a contingency fund that could be used to
pay fines, penalties and similar liabilities arising from the new
legislation - whether the board is justified in consenting to the
proposed amendment
SUPERANNUATION - PUBLIC SERVICE FUNDS - OTHER MATTERS - where
s 96(2) of the Trusts Act 1973 (Qld) refers to "all persons
interested in the application or such of them as the court thinks
expedient" - where the fund has over 600,000 members - where
the applicant notified each of the member associations that
nominated board members about the application - where notifying all
members of the fund would cost around $275,000.00 - whether wider
notification of members is required
EVIDENCE - NON-PUBLICATION OF EVIDENCE - PARTICULAR CASES - where
the applicant relied upon legal advice, including the opinions of
counsel, in the judicial advice application - where the applicant
relied on commercially sensitive information in the judicial advice
application - whether documents should be sealed on the court file
or otherwise subject to redactions
Australian Prudential Regulation Authority Act 1998 (Cth), s 56;
Corporations Act 2001 (Cth), ch 7, s 199A, s 766H
Trusts Act 1973 (Qld), s 96; Superannuation (State Public
Sector) Act 1990 (Qld), s 2, s 3, s 4, s 12
Superannuation Industry (Supervision) Act 1993 (Cth), s 10, s
29E, s 52, s 52A, s 54B, s 54C, s 56, s 57
McCormick v Queensland Law Society
Incorporated [2021] QCAT
343
PROFESSIONS AND TRADES - LAWYERS - PRACTISING CERTIFICATES -
CANCELLATION AND SUSPENSION - where the applicant was a sole legal
practitioner director of an incorporated legal practice - where the
respondent refused to renew the applicant's practising
certificate - where the Tribunal has granted a stay of that refusal
- where the applicant breached conditions of previous practising
certificate - where the applicant failed to submit external
examiner's reports - where the applicant has a history of
failing to communicate with the respondent - where the applicant
failed to satisfactorily maintain trust accounts - where the
applicant otherwise acted competently for clients - where there
were no issues with the applicant's honesty or integrity as a
practitioner - where the applicant has demonstrated frank and
honest insight into his conduct - whether the respondent made the
correct and preferable decision - whether the applicant is a fit
and proper person to hold a practising certificate
The second issue concerned the Applicant's ongoing failure to
comply with a request from the QLS that he provide certain tax and
superannuation information.
Germain v
Kelly [2021] SAET 206
Pecuniary penalties - Contravention of s 45 by not paying
any superannuation contributions during a three-year
hairdressing apprenticeship as required by the Award -
Contravention of s 90 by not paying accrued annual leave at the end
of the employment - Contravention of s 546 by not providing pay
slips - No mitigating circumstances - Held: Total penalties imposed
of $16,410.
Variation on the Commission's Own
Motion-Hospitality Industry (General) Award
2020 [2021] FWC 6203
s.160 - application to vary a modern award to remove ambiguity or
uncertainty or correct error
Variation on the Commission's Own Motion - Hospitality Industry
(General) Award 2020
[1] On 30 September 2021, AustralianSuper informed the Commission
of the forthcoming merger of Club Plus
Superannuation Scheme (Club Plus Super) and AustralianSuper,
expected to occur on 1 December 2021
[3] AustralianSuper has requested that the Commission exercise its
power under s.160(2)(a) of the Fair Work Act 2009 (the Act) to vary
the Award to remove an ambiguity or uncertainty arising from the
merger.
Legislation
Commonwealth
Bills - 28 October 2021
Financial Accountability Regime Bill
2021
HR 28/10/2021 - the Financial Accountability Regime Bill 2021
introduces a new accountability regime for the banking, insurance
and superannuation industries. Schedules 1 and 2 to the Bill make
consequential amendments to relevant Acts to support the Financial
Accountability Regime.
Financial Sector Reform (Hayne Royal
Commission Response No. 3) Bill 2021
HR 28/10/2021 - a Bill for an Act to deal with consequential
amendments and transitional matters arising from the enactment of
the Financial Accountability Regime Act 2021 and to establish the
financial services compensation scheme of last resort
Note: The Financial Services Compensation Scheme of Last Resort
Levy Bill 2021 and Financial Services Compensation Scheme of Last
Resort Levy (Collection) Bill 2021 and Schedule 3 to the Financial
Sector Reform (Hayne Royal Commission Response No. 3) Bill 2021
introduces the CSLR.
Financial Services Compensation Scheme of
Last Resort Levy (Collection) Bill 2021
HR 28/10/2021 - a Bill for an Act to provide for the collection of
levy imposed on persons relating to the AFCA scheme.
Financial Services Compensation Scheme of
Last Resort Levy Bill 2021
HR 28/10/2021 - the levy framework creates a tax to be levied
against relevant industry entities to fund the CSLR. The CSLR's
levy framework contains a primary funding mechanism ('annual
levies'), and if needed, a secondary funding mechanism
('further levies') if the annual levy collected is
insufficient or likely to be insufficient to meet the initial
estimate of costs, fees, and claims.
Treasury Laws Amendment (Enhancing
Superannuation Outcomes For Australians and Helping Australian
Businesses Invest) Bill 2021
HR 27/10/2021 - schedule 1 to the Bill amends the SGAA to remove
the $450-a-month threshold before an employee's salary or wages
count towards the Superannuation Guarantee. Removing the
$450-a-month threshold will expand the coverage of the
Superannuation Guarantee to eligible employees earning salary or
wages less than $450 in a calendar month from a single
employer.
Protecting Pensioners from the Cashless
Debit Card Bill 2021
25/10/2021 - the Protecting Pensioners from the Cashless Debit Card
Bill 2021 (the Bill) will amend the Social Security
(Administration) Act 1999 (the Act) to repeal law that allows the
Government to compel social security recipients to use the Cashless
Debit Card.
Superannuation Guarantee (Administration)
Amendment Bill 2021
HR 19/10/2021 - amends the Superannuation Guarantee
(Administration) Act 1992 - section 32R
32S Excluded occupations.
Regulations
Superannuation Guarantee (Administration) -
Choice of Fund - Written Guidelines for the Reduction of an
Increase in an Employer's Individual Superannuation Guarantee
Shortfall Determination 2021
22/10/2021 - this instrument repeals and replaces the Written
Guidelines for the Reduction of an Increase in an Employer's
Individual Superannuation Guarantee Shortfall under the
Superannuation Guarantee (Administration) Act 1992 (09/06/2006) and
determines where employers make contributions on behalf of
employees for superannuation guarantee purposes that do not meet
the "choice of fund" requirements the Commissioner of
Taxation may reduce any shortfall or disregard any non-compliance
either in whole or in part.
Superannuation Guarantee (Administration) -
Stapled Fund - Guidelines for the Reduction of an Employer's
Individual Superannuation Guarantee Shortfall for Late
Contributions Due to Non-acceptance by Notified Stapled Fund
Determination 2021
22/10/2021 - this instrument sets out the guidelines the
Commissioner of Taxation must have regard to in making a decision
whether or not to reduce the amount of an employer's individual
superannuation guarantee shortfall for an employee for a quarter
under subsection 19(2F) of the Superannuation Guarantee
(Administration) Act 1992.
ASIC Corporations (Amendment) Instrument
2021/848
Tabled Senate 18/10/2021 - this instrument amends the ASIC
Corporations (COVID-19-Advice-related Relief) Instrument 2021/268
to give effect to two temporary relief measures that facilitate
access to timely and affordable personal advice for existing
clients of providing entities that is in connection with the
adverse economic effects of COVID-19.
NSW
Regulations and other miscellaneous instruments
State Authorities Non-contributory Superannuation
Amendment (Keolis Downer Northern Beaches Pty Ltd) Order
2021 (2021-634) - published LW 29 October 2021
State Authorities Non-contributory Superannuation
Amendment Regulation 2021 (2021-635) - published LW 29
October 2021
State Authorities Superannuation Amendment (Keolis
Downer Northern Beaches Pty Ltd) Order 2021 (2021-636) -
published LW 29 October 2021
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.