Issue 870, 27 September 2022
In this issue:
Annual members’ meeting notice regulations: disallowance motion postponed
As reported in ASFA Action issue 868, the independent Senator David Pocock has given notice that he intended to move that the Superannuation Industry (Supervision) Amendment (Annual Members’ Meetings Notices) Regulations 2022 be disallowed. Those regulations amend the disclosure requirements for registrable superannuation entities’ annual members’ meeting notices.
The Senate’s consideration of the disallowance motion was initially delayed by the suspension of Parliament’s scheduled sitting days on 12-15 September due to the death of the Queen. While the motion was expected to be moved when the Senate resumed sitting on 26 September, it has been postponed to 25 October.
Review of YFYS: Government establishes Technical Working Group
As reported in ASFA Action issue 868, Treasury has, at the Government’s direction, commenced a review of the operation of the Your Future, Your Super (YFYS) measures.
The Government has indicated that it has established a Technical Working Group to work alongside Treasury to evaluate the YFYS performance test.
According to the media release from the Assistant Treasurer and Minister for Financial Services, Stephen Jones MP, the Working Group is:
“comprised of independent economists, academics, investment advisers and representatives from retail and not for profit super funds.
These knowledgeable and experienced industry participants will deliberate on increasing accountability for the performance of products which fall within the Your Future,
Your Super measures.
The working group is expected to be a forum for constructive, solutions-based discussions on specific technical issues relating to the performance test.”
If you have any feedback you would like ASFA to consider in relation to our response to the YFYS review, please forward it to Fiona Galbraith by close of business Friday 30 September 2022.
WA de facto family law superannuation splitting
As reported in recent ASFA Actions, the Western Australian (WA) Parliament recently passed the Family Court Amendment Act 2022 (WA Act) (see ASFA Action issue 869).
The WA Act contains provisions relevant to efforts to allow separating WA de facto couples to access the family law superannuation splitting regime. It will operate in combination with the Commonwealth Family Law Amendment (Western Australia De Facto Superannuation Splitting and Bankruptcy) Act 2020 (commonwealth Act) and the Superannuation Legislation Amendment (Western Australia De Facto Superannuation Splitting) Regulations 2021 (Commonwealth Regulations).
Both the WA Act and the Commonwealth Act have now been proclaimed to commence on 28 September.
Expansion of eligibility for downsizer contribution: amending Bill progresses
As reported in ASFA Action issue 863, the Government has introduced into Parliament the Treasury Laws Amendment (2022 Measures No 2) Bill 2022. This Bill contains amendments to reduce the eligibility age for downsizer contributions from 60 to 55 years, which was a pre-election commitment from both the current and former governments.
The Bill has now been passed by the House of Representatives and introduced into the Senate.
The reduced eligibility age will apply to contributions made from the first day of the first quarter after the day on which the Bill receives Royal Assent. However, amendments will also be required to the Superannuation Industry (Supervision) Regulations 1994 and Retirement Savings Account Regulations 1997 to allow funds and retirement savings accounts to accept downsizer contributions made in reliance on the amendment.
Recent changes to SG laws: ATO reminder to employers
The ATO has indicated that it will, during this week, send letters and emails to employers reminding them of recent changes to the Superannuation Guarantee (SG) laws. The correspondence is intended to ensure employers pay the correct SG contributions for their employees, given the first SG quarter for the 2022-23 year ends on 30 September. The correspondence highlights:
- the increase in the SG rate from 10 per cent to 10.5 per cent
- the removal of the $450 per month earnings threshold for SG eligibility.
ASFA REGULATORY WATCHLIST
ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations
and other regulatory announcements relevant to superannuation.
