Issue 771, 17 August 2020
In this issue:
- Review of APRA’s performance measures: consultation
- Super Guarantee amnesty – ATO draft guidance on remission of additional SG charge: consultation
- Protecting critical infrastructure and systems of national significance: consultation
- COVID-19 Coronavirus: early release of super ‐ APRA data
- Small Business Superannuation Clearing House
- ASIC: Derivative transaction reporting
Review of APRA’s performance measures: consultation
APRA is seeking feedback from stakeholders on the measures it uses to self-assess its performance.
The Regulator Performance Framework (RPF) was established by the Government in 2015. It establishes outcomes-based Key Performance Indicators (KPIs) for each of the financial regulators, along with specified characteristics of good regulatory performance. Each regulator is required to undertake an annual self-assessment of their performance against each KPI.
APRA’s existing measures under the RPF were developed in consultation with industry stakeholders in April 2015. In last year’s self-assessment, published in December 2019, APRA indicated it would review its measures in 2020 to ensure they remain fit for purpose.
APRA has now developed a set of revised proposed performance measures which will significantly streamline its metrics to improve accountability, adopt better practice and reduce duplication.
If you have any feedback you would like ASFA to consider including in a response to APRA, please forward it to Fiona Galbraith by close of business Friday 11 September.
Super Guarantee amnesty – ATO draft guidance on remission of additional SG charge: consultation
The ATO has released draft guidance about penalties under the Super Guarantee (SG) amnesty, which is due to end on 7 September.
As reported in ASFA Action issues 739 and 722, the amnesty is a 12-month period within which employers could self-correct historical SG non-compliance. Under the amnesty, employers are able to claim tax deductions for payments of SG charge or on contributions made during the amnesty period to offset SG charge. In addition, employers who self-disclose under the amnesty will not incur certain penalties and charges that would ordinarily apply.
The ATO has now issued Draft Practice Statement Law Administration PS LA 2020/D1: Remission of additional SG charge. This draft guidance deals with the remission of additional SG charge for quarters covered by the SG amnesty, and the Commissioner’s approach to penalties after the end of the amnesty.
When finalised, the guidance will apply from 8 September, following the conclusion of the amnesty.
If you have any feedback you would like ASFA to consider including in a response to the ATO, please forward it to Fiona Galbraith by close of business Friday 21 August.
Protecting critical infrastructure and systems of national significance: consultation
The Department of Home Affairs is consulting on an enhanced regulatory framework in relation to critical infrastructure and systems of national significance.
The framework is outlined in a consultation paper: Protecting Critical Infrastructure and Systems of National Significance. It builds on existing requirements under the Security of Critical Infrastructure Act 2018, and will include:
- a positive security obligation for critical infrastructure entities, supported by sector-specific requirements
- enhanced cyber security obligations for those entities most important to the nation
- Government assistance to entities in response to significant cyber-attacks on Australian systems.
The consultation paper recognises that many operators of critical infrastructure—particularly in the banking and finance sectors—already operate under regulatory frameworks that impose risk management, reporting and transparency obligations. It therefore seeks to explore ways that will ensure the new requirements build on and do not duplicate existing regulatory frameworks. In this respect, it will be necessary to avoid duplication with existing prudential standards such as SPS 232 Business Continuity Management and CPS 234 Information Security.
If you have any feedback you would like ASFA to consider in relation to the consultation paper, please forward it to Byron Addison by close of business Wednesday 9 September.
COVID-19 Coronavirus: early release of super ‐ APRA data
APRA has made its sixteenth weekly publication of industry-level data from its early release initiative data collection.
The data covers applications made from inception of the early release initiative on 20 April through to 9 August.
The data shows that from 20 April to 9 August:
- payments totalling $31.1 billion had been made, with an average payment of $7,689
- 3 million ‘initial’ applications had been received, with an average application amount of $7,402
- 1.1million ‘repeat’ applications had been received, with an average application amount of $8,487
- funds were taking an average of 3.3 business days to pay an application, with 95 per cent of applications paid within five business days.
An ‘initial’ application is the first application made in respect of a member account whether this occurred in the 2019-20 financial year application period or the 2020-21 financial year application period. A ‘repeat application’ is an application for a member account that previously submitted an initial application – all ‘repeat’ applications therefore relate to the 2020-21 financial year application period.
APRA has also published the fifteenth tranche of fund-level statistics from its early release data collection, revealing the number and value of the payments processed by each fund, as well as the time taken to make payments.
Small Business Superannuation Clearing House
The Government has made a determination establishing a new holding account to provide for the continued operation of the Small Business Superannuation Clearing House (SBSCH) by the ATO. The new account will replace arrangements that are due to sunset (expire).
The SG regime permits employers to pay contribution for their employees to an approved clearing house, instead of directly to a complying superannuation fund or retirement savings account (RSA). Under such arrangements, the clearing house distributes the contributions to the superannuation fund or RSA nominated by the employee. The ATO operates the SBSCH, which is an approved clearing house for SG purposes, and makes contributions to RSAs and superannuation funds on behalf of participating employers as the employers’ agent.
Amounts received by the SBSCH are currently held in a ‘special account’ that was established by a legislative instrument that is due to sunset on 1 October. A ‘special account’ is a mechanism that allows amounts to be appropriate or set aside within the Consolidated Revenue Fund for spending on specified purposes.
Using its powers under the Public Governance, Performance and Accountability Act 2013 (PGPA Act), the Government has now registered the PGPA Act Determination (Superannuation Clearing House Special Account 2020) to create a new special account. The new account will effectively replace the existing account and allow the ATO to continue to administer the SBSCH.
ASIC: Derivative transaction reporting
ASIC has added a new page to the section of its website dealing with Over the Counter Derivative (OTCD) trade reporting.
The new page contains information about ASIC’s current work on upcoming rules and exemptions changes.
In particular, ASIC has posted its current work on proposals for changes to the listings of non-OTC foreign exchanges in the Regulated Foreign Markets Determination and as ‘relevant financial markets’ in the exemption.
ASIC welcomes comments on these proposals by email to otcd@asic.gov.au.
ASIC has also re-organised exemption relief for reporting entities to distinguish more clearly the ‘in-force’ instruments from the historical ‘as-made’ instruments.
ASFA REGULATORY WATCHLIST
ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations
and other regulatory announcements relevant to superannuation.
