Issue 608, 12 September 2016
In this issue:
- Review of financial system external dispute resolution framework
- Budget superannuation changes: first tranche exposure draft
Review of financial system external dispute resolution framework
The expert panel conducting a review of the financial system’s external dispute resolution (EDR) framework has released an issues paper seeking input from industry stakeholders.
The review was announced by the government on 20 April 2016 as part of its package of measures to strengthen ASIC and improve consumer protection in financial services, and was confirmed as part of the May 2016 Budget (see ASFA Action issues 601 and 602 for background).
The review will consider the role, powers, funding and governance of all of the financial system’s EDR and complaints schemes—the Superannuation Complaints Tribunal, the Financial Ombudsman Scheme, and the Credit and Investments Ombudsman.
The panel has been tasked with assessing the merits of better integrating these schemes to improve the handling of consumer complaints, including by exploring the possibility of having a ‘one-stop-shop’ for handling consumer disputes and complaints.
Submissions on the issues paper are due by 7 October 2016 and will inform an interim report to be released at the end of November 2016. The panel is due to provide its final report to the government by the end of March 2017.
If you have any feedback you would like ASFA to consider including in our response to the issues paper, please forward it to Julia Stannard by close of business Wednesday 28 September.
Budget superannuation changes: first tranche exposure draft
On 7 September, the government released exposure drafts of legislation and regulations for public consultation, to implement the first tranche of the superannuation reforms announced in its May 2016 Budget.
The package, comprising the Superannuation (Objective) Bill 2016, the Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 and the Treasury Laws Amendment (Fair and Sustainable Superannuation) Regulation 2016, implement the following five superannuation measures announced in the 2016–17 Budget:
- legislating the objective of superannuation
- extending eligibility for tax deductions for personal superannuation contributions
- introducing a low income superannuation tax offset to replace the current low income superannuation contribution
- removing the current work test from the contribution rules for those aged 65–74
- expanding eligibility for the low income spouse superannuation contribution offset.
The government has indicated that it will continue to work with stakeholders to progress implementation of the other measures announced in the 2016–17 Budget.
ASFA believes it is critical the objective of superannuation reflects the core purpose of the system in providing adequate retirement outcomes for all Australians. ASFA will be responding to the exposure draft accordingly. Should you have any queries or comments regarding the proposed objective, please contact Julian Cabarrus.
If you have any feedback on the remaining measures in the first tranche (the tax-related proposals and the removal of the contributions work test) that you would like ASFA to consider including in our response to Treasury, please forward it to Julia Stannard by 2pm Thursday 15 September (noting submissions are due Friday 16 September).
