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ASFA Action Issue 951, 18 June 2024
In this issue:  

 

AFCA: consultation on proposed Approach document schedule

The Australian Financial Complaints Authority (AFCA) has released its proposed schedule for issuing new or updated Approach documents during 2024-25. AFCA’s Approach documents are intended to support consumers’ and financial firms’ understanding of AFCA’s approach to certain issues and how it reaches decisions.

In relation to superannuation, AFCA has indicated it intends to

AFCA is seeking feedback on the proposed schedule and suggestions of any other Approach documents that should be prioritised for 2024-25 (consultation on the new and updated Approach documents themselves will occur later).

If you have any feedback you would like ASFA to consider in relation to AFCA’s Approach document schedule, please forward it to Julia Stannard by close of business Monday 24 June.

 

Operational risk management: APRA guidance CPG 230 finalised

APRA has published the final version of its prudential practice guide CPG 230, to support the new cross-industry prudential standard CPS 230 Operational Risk Management.

CPS 230 will commence on 1 July 2025 and will implement strengthened requirements around operational risk, business continuity and management of material service providers. It will replace a number of existing prudential standards. APRA released the final version of CPS 230 last July and at the same time commenced consultation on CPG 230 – see ASFA Action issue 907 for background.

APRA has released a detailed response to submissions on CPG 230, that:

The response guide also indicates that while CPS 230 will still come into effect on 1 July 2025 for all regulated entities, APRA will give entities that are not significant financial institutions (SFIs) a 12-month extension on requirements relating to business continuity and scenario analysis. It should be noted that many large APRA-regulated superannuation funds are classified as SFIs and not eligible for this extension. (In very broad terms, a registrable superannuation entity is an SFI if it has total assets exceeding $30 billion or has otherwise been determined by APRA to be a SFI due to matters such as the complexity of its operations or its membership of a group.)


Tax withholding schedules

The ATO has registered the Taxation Administration (Withholding Schedules) Instrument 2024. This instrument makes 15 withholding schedules that specify the amount, formulas and procedures to be used for working out the amount required to be withheld by an entity under the pay as you go (PAYG) system – including from superannuation payments.

The instrument repeals and replaces Taxation Administration Withholding Schedules Instrument 2023 as well as the Taxation Administration Act 1953 – Pay as you go withholding – Tax table for additional amounts to withhold as a result of an agreement to increase withholding (the latter is now replaced by schedule 14 of this Instrument).

All 15 of the withholding schedules in the Instrument have been updated – including those relating to superannuation lump sums (Schedule 12) and superannuation income streams (Schedule 13). The updates include the ATO giving effect to recent amendments to the tax rates and Medicare levy thresholds, and removing redundant web links, web content, file type and file size references.

 

Family law superannuation interest rate determination

The Australian Government Actuary has made the Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2024. The Determination sets the interest rate for adjusting the superannuation entitlements of separated and divorced spouses under splitting orders and agreements made under the Family Law Act 1975.

The Determination sets the interest rate for the adjustment period that comprises the financial year beginning on 1 July 2024 at 7.0 per cent. The Determination also provides the method by which the interest rate is calculated for an adjustment period that includes a period within that financial year.

 

Bills update

The Modern Slavery Amendment (Australian Anti-Slavery Commissioner) Act 2024 received Royal Assent on 11 June. As reported in ASFA Action issue 925, this establishes the core functions of the Anti-Slavery Commissioner, following a recent review of the Modern Slavery Act 2018.

The Attorney-General’s Portfolio Miscellaneous Measures Act 2024 also received Royal Assent on 11 June. As reported in ASFA Action issue 924, this this confers jurisdiction on the Federal Court to hear and determine a range of summary and indictable offences relating to conduct within the regulatory remit of ASIC, including several existing offences under the Superannuation Industry (Supervision) Act 1993 and the Corporations Act 2001.

 

ASFA REGULATORY WATCHLIST

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

and other regulatory announcements relevant to superannuation.

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