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Issue 809, 17 June 2021 
In this issue: 


Your Future, Your Super: Bill amended 

The Treasury Laws Amendment (Your Future, Your Super) Bill 2021 was passed by the Senate earlier today with amendments. 

The Bill will implement the Government’s Your Future, Your Super (YFYS) reforms, announced in the October 2020 Federal Budget (see ASFA Actions 808, 778 and 785 for background). The YFYS reforms contain: 

The Government successfully moved amendments to the Bill to: 

The Bill will now return to the House of Representatives for consideration of the Senate’s amendments. 


Non-concessional contribution bring forward arrangements: Bill amended 

The Senate has this morning passed, with amendments, a Bill increasing the cut-off age for the non-concessional contribution ‘bring forward’ arrangements from 65 to 67, as announced in the April 2019 Budget. 

As reported in ASFA Action issue 773, the Treasury Laws Amendment (More Flexible Superannuation) Bill 2020 contains an amendment extending the bring forward arrangements for non-concessional contributions to individuals under age 67. The amendment is intended to commence from the start of the first quarter after the amending Act receives Royal Assent, with application to non-concessional contributions made on or after 1 July 2020. 

As noted in ASFA Action issue 773, the One Nation party had circulated a number of amendments that it intended to move to this Bill in the Senate. The amendments ultimately moved by One Nation today differed from those previously circulated. 

At a high level, the amendments moved today — and passed, with the support of the Government — appear to: 

Ultimately, Senator Hanson did not proceed with previously circulated amendments that would have increased the concessional contributions cap for those aged over 67. An amendment proposed by the Opposition — that for every Bill or regulation relating to superannuation there must be a statement of its compatibility with the primary objective of the superannuation system — did not proceed. 

The Bill will now return to the House of Representatives for consideration of the amendments made by the Senate. 

(See ASFA Action issues 773, 760 and 755 for background in relation to this Bill.) 


SMSFs and small APRA fund membership limit: progress of Bill 

The Senate has this morning passed a Bill to increase the maximum number of members permitted in a self-managed superannuation fund (SMSF) or small APRA fund. The Bill now awaits consideration by the House of Representatives. 

The Treasury Laws Amendment (Self Managed Superannuation Funds) Bill 2020 proposes an increase the number of members referred to in the definition of SMSF in the SIS Act from fewer than five members to “no more than six members”. As a result, the maximum number of members of an SMSF and a SAF is increased from four to six. The Bill also makes corresponding amendments to related tax legislation and the Corporations Act 2001. The amendments will apply from the start of the first quarter commencing after the Act receives Royal Assent. 

The Opposition unsuccessfully moved an amendment that would have required a review of the operation of the amendments, considering the conduct of financial advisers and trustees and SMSF investment performance and governance. 

As this Bill was introduced in the Senate, it will now proceed to consideration by the House of Representatives. 

See ASFA Action issues 774, 766, 763 and 669 for background in relation to this Bill. 


ASFA / Deloitte Target Market Determination (TMD) Template available for ASFA members 

ASFA and Deloitte have developed a TMD template, with input from ASFA’s TMD Template Working Group, to assist members with their Design and Distribution Obligations (DDO) regime obligations. 

The ASFA / Deloitte TMD Template can be accessed here. 

Please contact Maggie Kaczmarska if you have any questions in relation to the TMD template. 


Disclosure obligations for ongoing fee arrangements: transitional reliefs 

The Government has indicated it will provide transitional relief to help financial advisers comply with new disclosure obligations for ongoing fee arrangements. 

As part of its response to recommendation 2.1 from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, the Government recently amended the Corporations Act 2001 to require greater disclosure in relation to fees charged for financial advice. These reforms were part of the Financial Sector Reform (Hayne Royal Commission Response No. 2) Act 2021 (see ASFA Action issue 795 for background). 

In particular, from 1 July 2021 financial advisers are required to report the fees paid under an ongoing fee arrangement and provide a reasonable estimate of the fees that will be paid in the subsequent 12 months. Advisers can issue this fee disclosure statement anytime between the transition period 1 July 2021 and 30 June 2022, and the date of issue will become the anniversary date for future fee disclosure statements. 

The Government has acknowledged that it may be difficult for industry to generate an accurate fee disclosure statement during the transition period as fees are required to be reported up to the day before the statement is issued. To address this, the Government will make a regulation to allow advisers to report an estimate of fees for the 60 days prior to the statement being issued. The estimate would be reported alongside the actual fees charged for the remainder of the previous 12 months. 

This regulation will only apply for the transition period. After the transition period, financial advisers will have 60 days from the anniversary date to issue their fee disclosure statements which must report all fees paid in the previous 12 months. The Government has indicated that the regulation will be made by 1 July 2021. 


Ongoing fee arrangements: ASIC guidance 

ASIC has released an information sheet on ongoing fee arrangements to provide greater clarity on obligations when providing personal advice to retail clients. 

The information sheet takes into account responses to ASIC’s recent consultations, including Consultation Paper 332 Promoting access to affordable advice for consumers (see ASFA Action issue 784 for background). 

The information sheet answers frequently asked questions (FAQs) about the obligations that apply to fee recipients who provide personal advice to retail clients under an OFA. These include questions relating to: 

ASIC has also released consequential amendments to RG 175Licensing: Financial Product Advisors-Conduct and Disclosure. The amendments include an example of the lack of independent disclosure statement to help advisers understand the requirements in ASIC Corporations (Disclosure of Lack of Independence) Instrument 2021/125 (see ASFA Action issue 797 for background). 


AML/CTF rules amended 

AUSTRAC has registered amendments to the anti-money laundering and counter-terrorism financing (AML/CTF) regime, some of which may be relevant to the administration of superannuation funds. 

The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2021 (No. 1) makes a number of amendments to the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) (AML/CTF Rules). Of particular relevance to superannuation funds, these include: 

The amendments commence on 17 June. 




ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations

and other regulatory announcements relevant to superannuation.

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