Issue 670, 15 May 2018
In this issue:
- Omnibus amendment bill: Senate Committee inquiry
- Proposed financial institutions supervisory levies for 2018-19: consultation
- ASIC cost recovery implementation statement: fees-for-service
- ASX corporate governance principles and recommendations: consultation
- Member Account Transaction Service (MATS) draft legislative instrument
- May 2016 Budget reforms: ATO guidance amended
- SMSF and super holding accounts regulations remade
Omnibus amendment bill: Senate Committee inquiry
The omnibus amendment bill introduced into Parliament in late March has been referred to the Senate Economics Legislation Committee for inquiry and report.
The Treasury Laws Amendment (2018 Measures No. 4) Bill 2018 proposes a range of amendments in relation to:
- superannuation guarantee (SG) compliance and penalties
- single touch payroll
- fund reporting
- employee commencement
- Superannuation Complaints Tribunal (SCT) secrecy provisions and disclosure of information and documents to the Australian Financial Complaints Authority
- MySuper
- deferred annuities
- reversionary transition to retirement income streams (TRIS).
See ASFA Action issue 665 for more information.
If you have any feedback that you would like ASFA to consider including in a potential submission to the Committee, please forward it to Julia Stannard by close of business Monday 21 May.
Proposed financial institutions supervisory levies for 2018-19: consultation
Treasury has issued a consultation paper seeking submissions on the proposed financial institutions supervisory levies that will apply for the 2018-19 financial year.
The financial institutions supervisory levies are set to recover the operational costs of APRA and other specific costs incurred by certain Commonwealth agencies and departments, including the ATO. The levies for 2018-19 also still include recovery of some amounts of ASIC’s costs although this will be phased out over coming years given the introduction of the separate ASIC cost-recovery levy and the planned closure of the Superannuation Complaints Tribunal in 2020.
The paper reflects funding announcements in the Mid-Year Economic & Fiscal Outlook in December (see ASFA Action issue 655) and the Budget on 8 May (see ASFA Action issue 669).
If you have any feedback on issues you would like ASFA to consider including in our submission, please forward it to Andrew Craston by close of business, Friday 25 May.
ASIC cost recovery implementation statement: fees-for-service
ASIC is consulting on its Cost Recovery Implementation Statement (CRIS) for its fees-for-service regime. The fees-for-service regime is the second phase of the broader ASIC industry funding model (see ASFA Action issue 667 for details of the government’s recent consultation on draft legislation for the regime).
The CRIS for ASIC’s fees-for-service regime provides information about how ASIC will recover various userinitiated and transactionbased regulatory costs via cost recovery fees in 2018-19. It includes information about the proposed fees-for-service, the methodology for calculating the fees and stakeholder engagement.
If you have any feedback on issues you would like ASFA to consider including in our submission, please forward it to Andrew Craston by close of business, Monday 21 May.
ASX corporate governance principles and recommendations: consultation
The ASX Corporate Governance Council is consulting on proposals to issue an updated fourth edition of the Corporate Governance Principles and Recommendations (the “Principles and Recommendations”).
ASFA is a member of the Council that was convened in 2002 to develop and issue principles-based recommendations on the corporate governance practices to be adopted by ASX listed entities. The Principles and Recommendations are intended to assist listed entities to meet investor and stakeholder expectations in relation to their governance.
The consultation paper indicates that while governance standards remain high in Australia by international standards, the Council recognises the need for its principles and recommendations to evolve to address emerging domestic and global issues, including:
- social license to operate
- corporate values and culture
- whistle-blower policies
- anti-bribery and corruption policies
- gender diversity at board level
- increased guidance around carbon risk
- cyber risks
The consultation draft proposes some redrafting of principles as well as an increase in the number of recommendations. Additionally, there are proposals to amend a number of the existing recommendations and change the commentary in some areas where the Council has received feedback that greater guidance is needed or would be appreciated.
Submissions to the Council are due by Friday 27 July.
Member Account Transaction Service (MATS) draft legislative instrument
The ATO has undertaken a very brief consultation on a draft legislative instrument setting the timeframe for a superannuation provider to give a ‘MATS form’ to the ATO under the new event-based reporting framework.
The MATS form is the virtual approved form that superannuation providers (excluding self-managed superannuation funds) and life insurance companies must use to report to the ATO information regarding an individual’s superannuation account transactions. The details of the transactions that will need to be reported are set out in the MATS Business Implementation Guide, and include member contribution balance amounts, employer contributions, non-employer transactions, retirement phase events, and notices of intent to claim a deduction for personal contributions.
The draft instrument generally requires a provider to lodge a MATS form within 10 days after a reportable event, however member contribution balance amounts must be reported no later than 31 October following the end of the financial year to which the amount relates. The Commissioner may allow a longer time for lodgement of a MATS form.
MATS reporting will commence from 1 July 2018 however there will be a transitional period until 31 March 2019, allowing for the first lodgment of the MATS form to be no later than 10 business days from 31 March 2019 (unless deferred by the Commissioner).
The Transfer Balance Account Report (TBAR) (refer ASFA Action issue 646) will continue to be used by superannuation providers (excluding SMSFs) and life insurance companies to report event based transfer balance account information, until they transition to MATS. Amendments to information originally reported via the TBAR can be made by lodging an amended TBAR or by reporting the amendment in a MATS form. Events that occur in response to a commutation authority issued by the Commissioner will continue to be reported by superannuation providers and life insurance companies via the TBAR (as will any amendments to this information).
The draft legislative instrument does not alter providers’ obligation to provide a ‘member contributions statement’ to the ATO for the financial year ending 30 June 2018 (governed under the 2014 instrument Lodgement of statements by superannuation providers in relation to superannuation plans (other than self-managed superannuation funds) for each financial year ended 30 June in accordance with the Taxation Administration Act 1953).
The draft legislative instrument was published by the ATO on 8 May and submissions closed on 14 May.
May 2016 Budget reforms: ATO guidance amended
The ATO has amended some of the guidance material issued in relation to the May 2016 Budget reforms, to correct an error and provide further clarification.
Law Companion Ruling LCR 2016/8 Superannuation reform: transitional CGT relief for complying superannuation funds and pooled superannuation trusts provides guidance on the transitional capital gains tax (CGT) relief available for trustees of complying superannuation funds and pooled superannuation trusts because of the transfer balance cap and transition-to-retirement reforms introduced following the May 2016 Budget. Those reforms commenced on 1 July 2017.
LCR 2016/8 has been amended to correct an error and insert a footnote confirming that, when applying the CGT 50 per cent discount provisions, a clear period of 12 months is required. In calculating that 12 month period, trustees should exclude the day of acquisition and the day on which the CGT event happens.
SMSF and super holding accounts regulations remade
The government has remade three sets of regulations that were due to sunset (expire) between October 2018 and October 2019. The regulations relate to the levies payable by self-managed superannuation funds (SMSFs) and the operation of the Superannuation Holding Accounts Special Account (SHASA). Prior to 1 July 2006, if an employer was unable to find a fund to accept contributions on behalf of an employee, they were able to discharge their Superannuation Guarantee obligations by making a deposit to the SHASA, to be held by the ATO.
The regulations, registered on 14 May, are the:
- Superannuation (Self-Managed Superannuation Funds) Taxation Regulations 2018, which remake the Superannuation (Self-Managed Superannuation Funds) Taxation Regulations 1999
- Superannuation (Self-Managed Superannuation Funds) Supervisory Levy Imposition Regulations 2018, which remake the Superannuation (Self-Managed Superannuation Funds) Supervisory Levy Imposition Regulations 1991
- Small Superannuation Accounts Regulations 2018, which remake the Small Superannuation Accounts Regulations 2002.
The explanatory material accompanying the regulations indicate that they make no alteration to the substantive meaning or operation of the existing regulations, but make minor technical changes to adopt current drafting practices and remove redundant references. Consultation on draft versions of the regulations was undertaken in February (see ASFA Action issue 661).
ASFA REGULATORY WATCHLIST
ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations
and other regulatory announcements relevant to superannuation.
