Issue 558, 25 February 2015
In this issue:
- Superannuation data collection for the Australian Bureau of Statistics
- APRA update on regulatory cost savings
- Exposure draft regulations: Fairer Taxation of Excess Non-concessional Contributions Reforms
Superannuation data collection for the Australian Bureau of Statistics
APRA has advised registrable superannuation entities (RSEs), by way of letter on 27 January 2015, that it is consulting on superannuation data collection for the Australian Bureau of Statistics (ABS).
Comment is being sought on four proposed reporting standards:
- SRS 720.0 ABS Statement of Financial Position
- SRS 721.0 ABS Securities Subject to Repurchase and Resale and Stock Lending and Borrowing
- SRS 722.0 ABS Derivatives Schedule
- SRS 730.0 ABS Income and Expenditure.
The APRA letter and the supporting documents are available here, and explain some key facts about the proposed standards. RSEs with assets greater than $200 million will be required to lodge the forms.
The ABS advises that the new reporting standards are needed to collect information in accordance with revisions made to two international standards: the System of National Accounts (SNA) and the Balance of Payments Manual (BPM).
The ABS appears to be asking funds to ‘re-report’ their balance sheets on a quarterly basis in the ‘ABS format’ in addition to the current report to the quarterly balance sheets being reported in the ‘APRA format’. They also appear to be asking funds to re-report their profit and loss statement on an annual basis, in the ABS format in addition to the current report to APRA in the APRA format.
The ABS forms are also introducing a concept of ‘resident’ or ‘non-resident’ assets and liabilities. If that is the case, then to complete these forms with confidence, funds may have to keep another set of books or financial statements that separate their assets and liabilities on the ABS-required residency basis, as opposed to asset classes, to make sure that the ABS data balances back to their member accounts. It is also apparent that, for at least one of the new forms, the methodology for compiling the data differs from accounting standards.
Submissions are being sought on the proposals by 17 April 2015.
If you have any feedback that you would like ASFA to consider including in its submission, email Fiona Galbraith by close of business (COB) Thursday, 2 April 2015.
APRA update on regulatory cost savings
The Australian Prudential Regulation Authority (APRA) recently released an update on regulatory cost savings and is seeking feedback on some of the cost saving options presented in the paper.
This update is the first of a series of periodic updates on APRA’s regulatory cost savings project. The update outlines the process APRA has undertaken to identify potential cost saving options and provides an overview of the cost savings achieved over 2014. It also sets out further cost saving options being considered by APRA.
In providing this update, APRA seeks two specific types of feedback from the industry or other interested parties:
- comment on the set of options presented in the paper, including any quantification of the level of cost savings achievable
- proposals for any further cost saving options.
Further information is available on the APRA website here.
If you have any feedback that you would like ASFA to consider including in its response, email Fiona Galbraith by COB Thursday 2 April 2015.
Exposure draft regulations: Fairer Taxation of Excess Non-Concessional Contributions reforms
The Treasury has released an exposure draft regulation and draft explanatory statement that seeks to make changes to regulations to implement the Fairer Taxation of Excess Non-concessional Contributions Reforms, and correct minor technical errors in the regulations.
The reforms will allow individuals to withdraw superannuation contributions in excess of the non concessional contributions cap made from 1 July 2013, and associated earnings, with these earnings to be taxed at the individual’s marginal tax rate. The reforms were introduced on 4 December 2014, as part of the Tax and Superannuation Laws Amendment (2014 Measures No. 7) Bill 2014 and are currently before Parliament.
ASFA has participated in extensive discussions with Treasury and the ATO on how the measure should be implemented. ASFA’s focus was on the simplicity of operation and reducing the burden on trustees, while maintaining the integrity of the non-concessional contribution cap. We believe this has largely been achieved.
The exposure draft and draft explanatory statement is available on the Treasury website here.
If you have any feedback that you would like ASFA to consider including in its response, email Robert Hodge by COB Wednesday 11 March 2015.
