In this edition:
Government and regulator interaction
ASFA CEO Martin Fahy and Deputy CEO Glen McCrea met with the Hon. Stephen Jones MP, Assistant Treasurer and Minister for Financial Services, to discuss the Government’s near-term focus post the election.
ASFA advocacy, through the secretariat and the Tax Specialist Advisory Committee, was influential in obtaining a delay to the application of an ATO ruling about non-arm’s length expenditure (NALE), to prevent potentially significant unintended impacts on large APRA-regulated funds. In June 2022, the ATO extended its ‘no-action’ position on Law Companion Ruling LCR 2021/2 Non-arm’s length income – expenditure incurred under a non-arm’s length arrangements to cover the 2022-23 income year, pending legislative amendments to ensure the NALE provisions operate as intended.
Research and submissions
A submission was made to AUSTRAC with respect to a confidential consultation on its revised guidance to assist customers who do not have identification. The Draft Guidance expands on those customers who may have difficulty providing conventional ID. ASFA’s submission was generally supportive but sought clarification that entities have the option whether to apply the draft guidance, whether it applies to low-risk clients only and whether it should apply to all financial services and products. The submission raised the possible use of digital/electronic forms of identification.
A submission was made to Treasury on the Quality of Advice Review, calling for a modest expansion of intra-fund advice and the compliance requirements for limited advice to be simplified.
A submission was also made to Treasury on the proposed Financial Institutions Supervisory Levies for 2022/23 calling for increased scrutiny over any increases to levies. The submission raised concerns that these costs will ultimately be passed through to the member and must be considered under the member best financial interest requirements.
A submission was made to ASIC on the Cost Recovery Implementation Statement: Industry funding calling for increased scrutiny over any increases to levies.
ASFA has released a paper with Deloitte that explores the Future of Insurance in Superannuation. The paper explores recent changes and potential improvements, including the benefits that could be achieved by strengthening data and focusing on wellness and a return to work.
The ASFA Retirement Standard and the significant increases in the cost of living faced by retirees were featured in The Australian, The Daily Telegraph, The Financial Standard, The Daily Mail, Self Managed Super and Independent Financial Adviser.
ASFA CEO Martin Fahy provided commentary on the declining super returns in an article in The Australian. There was also commentary featured on the decline in superannuation balances because of investment market volatility in The Daily Telegraph.
The impact of the increase of the Superannuation Guarantee (SG) to 10.5% on an individual’s retirement balance according to ASFA was referenced in an article in Really Simple Money, as well as in Financial Standard and Daily Mail.
ASFA’s research, Super Guru website and resources were all mentioned in an article in PS News.
ASFA’s analysis on the reduction in the number of superannuation funds was featured in Financial Newswire.
Events and Learning
The ASFA Learning team will be delivering the following workshops in June:
View our new professional development calendar to see what learning workshops and events are scheduled for the new financial year. Check out the course content, dates and locations and map out your professional development journey for 2022-23.