Policy & Research

Treasury releases draft regulations to require:

• trustees of SMSFs to consider insurance for their members as part of the fund’s investment strategy;
• money and other assets of an SMSF be kept separate from money and assets held by a trustee personally and by a standard employer-sponsor or an associate of a standard employer sponsor; and
• SMSFs to value the assets of the fund at net market value for reporting purposes.

The draft regulations are available on the StrongerSuper website here.

ASFA’s submission is available here..

The regulations as registered on 6 August 2013 are available here.

Full details are available on the Stronger Super website here

In summary the following implementation dates have been delayed:

• The introduction of a new range of administrative penalties (1 July 2013)
• Powers to require specific contraventions to be rectified (1 July 2013)
• Mandatory trustee education (1 July 2013)
• The acquisition and disposal of assets between SMSFs and related parties (1 July 2013)
• Criminal and civil sanctions to enable the ATO to penalise and discourage illegal early release scheme promoters (on Royal Assent)
• Amendments to existing tax laws so that amounts illegally released early are taxed at the superannuation non-complying tax rate (1 July 2013)

Access the exposure draft on the Stronger Super website here.

Comments closed 3 August 2012.

This regulation amends the Superannuation Industry (Supervision) Regulations 1994 to:

• require SMSF trustees, for years 2012–13 and later, to value the assets of the fund at market value for reporting purposes;
• require SMSF trustees to ‘regularly review’ the fund’s investment strategy;
• require SMSF trustees to consider insurance for their members as part of the fund’s investment strategy; and
• provide the ATO with the power to enforce the requirement for SMSF trustees to keep money and other assets of an SMSF separate from those held by a trustee personally.

The regulations as registered on 6 August 2012 are available here.

The exposure drafts cover:

Administrative consequences and Penalties for Trustees of SMSFs
This measure will provide the Commissioner of Taxation (Commissioner) with additional tools and more flexibility to deal with non-compliance with the law. These new tools will be available in conjunction with the Commissioner's existing powers to regulate the SMSF sector. See Treasury website here.

Penalties for Promoters of Illegal Early Release Schemes
This measure will deter promoters of illegal early release schemes from undermining the Government’s retirement policy and harming members in the process. See Treasury website here.

Roll-overs to SMSFs
As part of this measure, roll-overs to SMSFs will be captured as a designated service under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. See Treasury website here.

ASFA’s submissions of 19 September 2012 on the draft legislation is available on the ASFA website here.

The Bill amongst other things –

• Introduces a registration regime for SMSF auditors

Access the Bill and the EM here.

The Bill provides for the imposition of fees relating to approved auditors of SMSFs.

Access the Bill and the EM here.

Royal Assent for Superannuation Laws Amendment (Capital Gains Tax Relief and Other Efficiency Measures) Bill 2012.

The bill contains legislation enabling the SMSF auditor registration process.

Royal Assent for Superannuation Auditor Registration Imposition Bill 2012.

Income Tax Rates Amendment (Unlawful Payments from Regulated Superannuation Funds) Bill 2012

Tabled in Parliament. The bill imposes the superannuation fund non-complying tax rate of 45% on those amounts that are released early from superannuation by illegal means.

Superannuation Legislation Amendment (Reducing Illegal Early Release and Other Measures) Bill 2012

Tabled in Parliament. This bill introduces civil and criminal sanctions for a person who promotes a scheme that has resulted, or is likely to result, in the illegal early release of superannuation benefits.

Exposure draft of legislation relating to acquisitions and disposals of certain assets between self-managed superannuation funds (SMSFs) and related parties as well as the accompanying explanatory material.

Tax Laws Amendment (2013 Measures No.1) Bill 2013: self-managed superannuation funds and related parties and the accompanying explanatory memorandum are available on the Treasury website here.

See ASFA’s submission here.

The revised implementation date for the following reforms:

• Amendments to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 to capture rollovers to an SMSF as a designated service.
• The introduction of a new range of administrative penalties.
• Powers to require specific contraventions to be rectified.
• Mandatory trustee education.
• The acquisition and disposal of assets between SMSFs and related parties.
• Amendments to existing tax laws so that amounts illegally released early are taxed at the superannuation non-complying tax rate.