Issue 807, 1 June 2021
In this issue:
- Improving the visibility of super assets in family law proceedings: consultation
- Account-based pensions: reduction in minimum drawdown extended to 2021-22
- Royal Commission implementation: Financial Regulator Assessment Authority bills
Improving the visibility of super assets in family law proceedings: consultation
Treasury has released exposure draft legislation to facilitate the identification of superannuation assets by parties to family law proceedings, to implement a commitment made by the Government in late 2018 as part of the Women’s Economic Security Statement.
The draft legislation:
- provides for a party to family law property proceedings in the Family Court of Australia, Federal Circuit Court of Australia and Family Court of Western Australia to apply to the court to request information about the identity and value of their former partner’s superannuation assets from the ATO
- authorises the ATO to disclose this superannuation information to court registry staff for the purpose of relevant family law proceedings.
The intention of the new information-sharing process is to make it harder for parties to hide or under-disclose their superannuation assets in family law proceedings, and reduce the time, cost and complexity for parties seeking accurate superannuation information. See ASFA Action issue 691 for background in relation to this measure.
If you have any feedback on the draft legislation you would like ASFA to consider, please forward it to Fiona Galbraith by close of business Friday 18 June.
Account-based pensions: reduction in minimum drawdown extended to 2021-22
The Government has announced that it will extend the current temporary reduction in superannuation minimum drawdown rates for a further year to 30 June 2022.
The minimum drawdown rates for account-based pensions and similar products were reduced by 50 per cent for the 2019-20 and 2020-21 income years as part of the Government’s response to the COVID-19 pandemic (see ASFA Action issue 743).
The Government has now announced that it will extend the reduction to the 2021-22 income year, on the basis that, for many retirees, “the significant losses in financial markets as a result of the COVID-19 crisis are still having a negative effect on the account balance of their superannuation pension”.
The extension will require an amendment to the Superannuation Industry (Supervision) Regulations 1994.
Royal Commission implementation: Financial Regulator Assessment Authority bills
Bills to create a new body designed to assess the effectiveness and capability of APRA and ASIC have been passed by the House of Representatives.
As outlined in ASFA Action issue 805, the Financial Regulator Assessment Authority Bill 2021 and the Financial Regulator Assessment Authority (Consequential Amendments and Transitional Provisions) Bill 2021 will establish the Financial Regulator Assessment Authority (FRAA).
The FRAA is a new statutory body that will assess and report to the Minister on APRA’s and ASIC’s effectiveness and capability, at least every two years. Establishment of the FRAA is part of the Government’s response to recommendations 6.13 and 6.14 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
The Bills were passed by the House of Representatives without amendment on 26 May and now await consideration by the Senate.
ASFA REGULATORY WATCHLIST
ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations
and other regulatory announcements relevant to superannuation.
