Issue 737, 12 February 2020
In this issue:
- Protecting Your Super disclosure: ASIC report
- Royal Commission implementation: exposure draft legislation – reminder
- Superannuation bills update
Protecting Your Super disclosure: ASIC report
ASIC today has released the findings from its recent review of superannuation trustees’ communications with their members about changes introduced through the Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019 (PYSP).
ASIC previously wrote to trustees regarding its expectations about member communications in relation to the PYSP reforms (see ASFA Action issue 704).
Report 655 Review of member communications: Protecting Your Superannuation Package (PYSP) reform (REP 655) presents findings from ASIC’s review of a broad range of communications material from 12 superannuation funds with six million member accounts. The funds were chosen on the basis that—because of their relatively high number of inactive accounts—they were likely to be considerably affected by the PYSP reforms.
While the communications review is not exhaustive, the findings are important to all trustees framing communications to members on PYSP and related reforms, as well as other topics more broadly. REP 655 also provides information and tips for trustees and sets out ASIC’s expectations about future communications.
ASIC will continue to monitor trustee communications in relation to PYSP and related reforms and consider taking regulatory action where further issues are identified.
Royal Commission implementation: exposure draft legislation – reminder
As reported in ASFA Action issue 735, the Treasury has released an extensive package of consultation materials dealing with the implementation of several recommendations made in the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (see ASFA Action issue 697).
If you have any feedback you would like ASFA to consider in responding to the draft legislation, please forward it to Maggie Kaczmarska by close of business Wednesday, 19 February.
Superannuation bills update
The Government has introduced into Parliament amendments to make permanent the current tax relief for merging superannuation funds, that is due to expire on 1 July 2020. The amendments, contained in the Treasury Laws Amendment (2020 Measures No.1) Bill 2020, implement a commitment made in the 2019-20 Budget (see ASFA Action issue 703). The Productivity Commission recommended making the tax relief permanent in its report: Superannuation: Assessing Efficiency and Competitiveness.
Parliament has also been considering a number of other superannuation-related bills this week.
The Senate has commenced to debate the Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019 (Recovering Unpaid Super Bill. This Bill will implement a one-off 12-month amnesty to encourage employers to self-correct historical Superannuation Guarantee (SG) non-compliance. See ASFA Action issue 722 for details about this Bill.
The Treasury Laws Amendment (Reuniting More Superannuation) Bill 2020 has been passed by the House of Representatives without amendment and is awaiting consideration by the Senate. This Bill will facilitate the exit of eligible rollover funds (ERFs) from the superannuation industry by 30 June 2021. See ASFA Action issue 736 for more details.
The House of Representatives has also passed the Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019. This Bill will extend choice of fund to employees under workplace determinations or enterprise agreements made on or after 1 July 2020. See ASFA Action issue 729 for background on this Bill.
The Treasury Laws Amendment (2019 Measures No. 3) Bill 2019 has also been passed by the House of Representatives. This Bill includes amendments to several aspects of the superannuation and related tax legislation, including in relation to:
- protecting your superannuation, unclaimed superannuation and lost members
- superannuation pensions and rollover of death benefits
- employer reporting of salary sacrificed contributions
- downsizer contributions.
See ASFA Action issue 730 for more information about this Bill.
ASFA REGULATORY WATCHLIST
ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations
and other regulatory announcements relevant to superannuation.
